Intel will be dropped from the Dow Jones Industrial Average after a 25-year run, making way for chip giant Nvidia, S&P Dow Jones Indices announced on Friday.
This marks a significant setback for Intel, a pioneer in the tech industry and one of the first technology companies to be included in the blue-chip index.
Once a leader in the chip manufacturing world, Intel has struggled in recent years, losing its edge to competitors like Taiwan’s TSMC.
The company also missed opportunities in the booming artificial intelligence market, including passing on a chance to invest in OpenAI, the creator of ChatGPT.
Intel’s stock has plummeted 54 percent this year, making it the worst-performing stock in the Dow and leaving it with the lowest price on the price-weighted index. Following the news, Intel shares dipped 1% in after-hours trading on Friday, while Nvidia shares rose 1.5 percent.
Founded in 1968, Intel initially made memory chips before shifting to processors, which revolutionized the personal computer market. In the 1990s, the “Intel Inside” campaign turned its chips into premium products, and the company became a household name.
Nvidia, meanwhile, has become a major player in the global semiconductor industry.
Its chips are crucial for generative AI technologies, driving a massive surge in its stock value, which has increased seven-fold over the past two years and more than doubled this year alone.
Once known mainly among gamers for its powerful graphics processors, Nvidia is now the world’s second-most valuable company and a key indicator of the AI market’s growth.
The company’s 10-for-one stock split in June also made its shares more accessible to retail investors, paving the way for its inclusion in the Dow.
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