Intel is being kicked off a key Dow Jones Index — and Nvidia is taking its place

Intel makes way for Nvidia

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Intelhas been kicked off the Dow Jones Industrial Average index after a 25-year stint in the latest of a series of setbacks for the chipmaker.

Nvidiais set to take Intel’s place and join the list just weeks after it hit a $3 trillion market cap for the second time in 2024 - it currently trailsAppleas the world’s second-most valuable company.

Intel stock is down 51% in 2024 to date, making it the worst-performing stock on the Dow. It has a market cap of a touch under $99 billion.

Nvidia replaces Intel on key Dow Jones Index

S&P Dow Jones Indices confirmed Nvidia, together with paint manufacturing company Sherwin-Williams, will join the index. Sherwin-Williams will replace Down Inc.

Intel’s exit from the index and Nvidia’s addition highlight the company’s growing market dominance, driven by a significant boost in AI chip interest since the public preview launch ofChatGPTtwo years ago. Nvidia share prices have risen from around $14 in November 2022 to $135.37 today.

Once a major player in the chip market, Intel missed out on much of the earlyAIopportunity, giving space for Nvidia to dominate a section of the market that caters to the hyperscalers that fuel many of the AI servers we rely on.

Intel’s most recent quarterly revenue stood at $13.3 billion, down 6.3 year-over-year from $14.2 billion. Analysts are now predicting the company could make its first annual net loss since 1986, with 12 months’ revenue expected to be around $54 billion when it announces its final quarter in three months time.

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“Losing the status of Dow Jones inclusion would be another reputational blow for Intel, as it grapples with a painful transformation and loss of confidence," Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented.

Intellaid off 15,000 workers, or 15% of its then headcount, in August 2024, blaming high costs and low margins, with company CEO Pat Gelsinger aiming to save the chipmaker $10 billion by 2025.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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