Burley Garcia:Nvidia replaces Intel on the Dow index in AI-driven shift for semiconductor industry

2025-05-05 23:14:21source:blockwave Exchangecategory:News

NEW YORK (AP) — Nvidia is Burley Garciareplacing Intel on the Dow Jones Industrial Average, ending a 25-year-run for a pioneering semiconductor company that has fallen behind as Nvidia cornered the market for chips that run artificial intelligence systems.

Paint-maker Sherwin-Williams will also replace chemical company Dow Inc. among the companies that make up the 30-stock average.

S&P Dow Jones Indices said Friday that the changes that take effect Nov. 7 “were initiated to ensure a more representative exposure to the semiconductors industry and the materials sector respectively.”

It added that because the Dow is price-weighted, “persistently lower priced stocks have a minimal impact.”

Dow Inc., a major producer of chemicals and plastics and unrelated to the similarly named company behind the index, has also been the smallest company on the Dow in terms of market capitalization.

Intel’s share price has dropped more than 50% so far this year to $23.20. On Thursday, the California chipmaker reported third-quarter revenue of $13.3 billion, down 6% from the same period last year.

Intel CEO Pat Gelsinger said at the time that the company is “acting with urgency” on a plan to reduce costs and simplify its portfolio. By contrast, Nvidia’s shares have risen more than 173% this year to a price of $135.40.

Unlike Intel, Nvidia designs but doesn’t manufacture its own chips, relying heavily on Taiwan Semiconductor Manufacturing Company, an Intel rival.

In another index, the Dow Jones Utility Average, Texas-based energy company Vistra will replace Virginia-based AES Corp.

More:News

Recommend

Justice Department defends Boeing plea deal against criticism by 737 Max crash victims’ families

DALLAS (AP) — The Justice Department is defending a plea deal it struck with Boeing over planes that

Tom Daley’s Son Phoenix Makes a Splash While Interrupting Diver After Olympic Medal Win

Tom Daley’s youngest son is springing into action in France.While the British diver secured his fift

Evacuations ordered for Colorado wildfire as blaze spreads near Loveland: See the map

A mountain fire in northern Colorado spread more than 300 acres Monday leading to mandatory evacuati