Intel will be replaced by Nvidia in the Dow Jones Industrial Average after 25 years of presence, highlighting the shift in the semiconductor market and marking yet another setback for Intel.
Nvidia will join the index next week, along with paint maker Sherwin-Williams, which will replace Dow, S&P Dow Jones Indices said on Friday.
Once a dominant force in chipmaking, Intel has ceded its manufacturing lead to rival TSMC in recent years and missed out on the generative AI boom after missteps, including the decision not to invest in proprietary OpenAI ChatGPT.
Intel shares have already fallen 54% this year, making the company the worst performer in the index and leaving it with the lowest stock price in the price-weighted Dow.
This Friday, Intel shares fell 1.6% in aftermarket trading, while Nvidia rose 2.2%.
The move comes a day after Intel expressed optimism about the future of its PC and server businesses, forecasting revenue for the current quarter above estimates but warning that it has “a lot of work to do.”
“Losing its Dow Jones listed status would be another blow to Intel’s reputation as it faces a painful transformation and loss of confidence,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“This also means that Intel is not included in exchange traded funds (ETFs) that track the index, which could further impact the share price.”
Source: Terra
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