NVIDIA logo. (Photo = Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] NVIDIA, a leader in artificial intelligence (AI), is set to replace Intel in the Dow Jones Industrial Average (DJIA), marking a significant shift in the index. This change means that Intel, which was the first semiconductor company to be included in the DJIA, will exit the index after 25 years.

Standard & Poor’s (S&P) Global announced on November 1 that NVIDIA will officially be added to the DJIA on August 8, while Intel will be removed, having been included in the index since 1999. The DJIA is a prominent stock market index composed of 30 major U.S. companies.

CNBC noted that NVIDIA's ascension over Intel reflects the AI boom and major changes in the semiconductor industry. NVIDIA's stock has surged over 180% this year due to skyrocketing demand for AI chips, while Intel has struggled to keep pace with the AI boom, resulting in a more than 50% drop in its stock price. Following the announcement, Intel's stock fell by 1.85% in after-hours trading, while NVIDIA's rose by 2.91%.

With NVIDIA's addition to the DJIA, four out of six technology companies with a market capitalization exceeding $1 trillion will now be part of the index. Currently, major tech firms like Apple and Microsoft are included, but companies like Google and Meta are not.

 

 

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