Nvidia is set to replace Intel on the Dow Jones Industrial Average, ending Intel’s 25-year presence on the index. This shift reflects Nvidia’s remarkable rise, driven by surging demand for its AI processors, which now make the company the world’s second-most valuable, with a $3.32 trillion valuation. Meanwhile, Intel has faced significant challenges, including a 54% stock drop this year, losing market dominance to companies like TSMC and failing to capitalize on AI trends.
Nvidia’s growth underscores a broad transformation in the semiconductor industry. Initially known for gaming GPUs, Nvidia has become a leader in AI computing, supplying processors critical to the tech sector’s AI race. Its success has seen its stock soar nearly 190% this year, with recent gains bolstered by strong AI investments and OpenAI’s $6.6 billion funding round.
In contrast, Intel’s revenue declined to $54 billion in 2023, and analysts predict its first annual net loss since 1986. Nvidia’s addition to the Dow, alongside Sherwin-Williams, highlights shifting investor focus toward AI-driven innovation, further boosting Nvidia’s impact on the U.S. stock market, where it now contributes significantly to the S&P 500’s value.
