A Intel will be replaced by Nvidia in the index Dow Jones Industrial Averageafter 25 years of presence, highlighting the change in the semiconductor market and marking another setback for Intel.
A Nvidia will enter the index next week, together with the paint manufacturer Sherwin-Williamswhich will replace Dowreported S&P Dow Jones Indices this Friday (1st).
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Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing advantage to its rival TSMC and missed the opportunity for the generative artificial intelligence boom after missteps, including the decision not to invest in OpenAIowner of ChatGPT.
Intel shares are already down 54% this year, making the company the worst performer in the index and leaving it with the lowest share price in the price-weighted Dow.
The move comes a day after Intel expressed optimism about the future of its PC and server businesses, projecting revenue for the current quarter above estimates but warning that it had “a lot of work to do.”
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“Losing Dow Jones inclusion status would be another reputational blow for Intel as it faces a painful transformation and loss of trust,” 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.”
