Intel, after a 25-year run, is set to be replaced by Nvidia on the Dow Jones Industrial Average, marking a shift in the semiconductor industry. Intel’s stock has dropped 54% this year, making it the index’s worst performer and giving it the lowest stock price. In contrast, Nvidia’s market cap has soared to $3.32 trillion, far surpassing Intel’s, which fell below $100 billion for the first time in 30 years.
Nvidia’s dominance is driven by an unyielding demand for AI chips, positioning it as the main supplier in the booming artificial intelligence sector. The stock surged 18% in October, partly fueled by OpenAI’s $6.6 billion funding round. Over the past year, Nvidia’s share price has rocketed nearly 190%, thanks to the AI sector’s rapid growth and increasing demand for data center chips.
Intel, once a key player in the PC market, has faced setbacks, losing its manufacturing lead to rivals like TSMC and missing AI opportunities, including investments in OpenAI. Analysts predict Intel may post its first annual net loss since 1986. In 2023, its revenue was down nearly a third from 2021, the year CEO Pat Gelsinger took over.
Nvidia’s success, now coupled with inclusion in the Dow Jones alongside Sherwin-Williams, marks a significant milestone for the company and is expected to bolster the tech sector and the US stock market, with Nvidia, Apple, and Microsoft accounting for almost 20% of the S&P 500’s value.
