Nov 4, 2024 - Business
Nvidia to replace Intel in the Dow, a sign of tech's new world order
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Nvidia is among the few companies worth $1 trillion or more. Now the AI chipmaker joins another exclusive club: one of 30 blue-chip stocks in the Dow Jones Industrial Average.
Why it matters: This week Nvidia replaces Intel in the Dow, a sign of how much generative AI now dominates the tech sector.
- Intel — America's one-time chip leader that's been in the Dow for the past quarter century— is struggling to keep pace with the AI-driven chip boom.
- To understand the dramatic reversal of fortune consider this: When Intel joined the Dow in 1999, the Wall Street Journal described the company as one of the "new economy stocks" replacing "old-economy stalwarts." The same might be said of Nvidia today.
The bottom line: The Dow is less influential than it used to be, but its members are supposed to represent a cross-section of the economy. Now — with soaring AI investment expected to transform the economy — that looks a little bit closer to reality.
