On Friday, S&P Dow Jones Indices announced that AI chipmaker Nvidia will replace Intel in the Dow Jones Industrial Average, marking a seismic shift in the semiconductor industry and ending Intel’s 25-year run on the prestigious stock market index. The change takes effect on November 8.
“The index changes were initiated to ensure a more representative exposure to the semiconductors industry,” wrote S&P in a press release.
Intel’s stock has dropped 54 percent this year, making it the worst performer on the Dow, and the company now holds a market value of under $100 billion for the first time in three decades, Reuters reported. Analysts expect Intel to post its first annual net loss since 1986.