Intel has 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.
Nvidia is 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 trails Apple as 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 of ChatGPT two 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 early AI opportunity, 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.
“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.
Intel laid 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.
More from TechRadar Pro
- Check out the best AI writers
- Upgrade your own PC with our selection of the best processors
- Nvidia could be about to knock Apple off the top spot for most valuable company
