AP Photo/David Zalubowski, File; Getty Images; Chelsea Jia Feng/BI
Nvidia is joining the Dow Jones Industrial Average, the S&P Dow Jones Indices said on Friday, replacing its rival Intel, which held the position for 25 years.
The news follows a series of setbacks for Intel, the storied, nearly six-decade-old chipmaker. As Nvidia's stock market value surpassed $3 trillion this year, Intel shares fell by more than half in 2024.
Nvidia shares were up 3% in after-market trading. Intel was down about 2%.
Spokespeople for Intel and Nvidia declined to comment.
The Dow Jones Industrial Average, or DJIA, is made up of 30 blue-chip companies, from Amazon to Walt Disney Co., and is often used as a benchmark for the broader US economy.
Since 1999, Intel has held its position on the DJIA to reflect the state of the larger semiconductor industry. The company, founded in 1968 in Silicon Valley, was the dominant player in graphics chips design and manufacturing.
That position has changed in recent years amid the artificial intelligence boom.
A series of missteps left Intel trailing behind in the AI race, allowing for a changing of the guard, with Nvidia crowned as the new chips king.
In August, Intel announced it would lay off 15,000 employees. Intel CEO Pat Gelsinger has been mounting a turnaround plan, announcing new initiatives for its in-house manufacturing business, a partnership with Amazon Web Services, and a $3 billion contract with the US government.
Meanwhile, Nvidia, founded in 1993 by Jensen Huang, has already been seen as the leader of the AI race.
Analysts at Susquehanna in late September said it had become "the world's de facto enabler of AI."
Now, with its entrance into the DJIA, it only underlines the mainstream acceptance of Nvidia as a market leader.
"This is another flex-the-muscles moment for Jensen and Nvidia and speaks to the AI Revolution and the importance of Nvidia to the market," Wedbush analyst Dan Ives said of the DJIA placement.
This story is developing. Check back for more information.
