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

Intel makes way for Nvidia

News By Craig Hale published 4 November 2024

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.

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