Stocks up 170%, Nvidia replaces Intel on the Dow Jones index

Nvidia will officially replace Intel in the Dow Jones index on November 8, reflecting the shift in the semiconductor industry and Nvidia's dominance in artificial intelligence (AI).

Nvidia will replace Intel on the Dow Jones index on November 8 - Photo: BUSINESS INSIDER

According to information released by S&P Dow Jones Indices on November 1, Nvidia will soon replace its rival Intel in the Dow Jones Industrial Average.

Intel shares fell 1% in extended trading on November 1, while Nvidia shares rose 1%.

Nvidia shares have surged more than 170% this year alone, after rising about 240% in 2023 thanks to investor enthusiasm, according to CNBC.

The move comes just a day after Intel expressed optimism about the future of its PC and server businesses, forecasting higher-than-expected revenue for the current quarter but also warning that the company remains in trouble.

"Losing its status in the Dow would be another blow to Intel's reputation as it faces a painful transition and loss of confidence," Susannah Streeter, director of currencies and markets at Hargreaves Lansdown, told Reuters, adding that Intel's share price could also be affected.

Nvidia has established an early foothold in the AI revolution, with chips designed specifically for machine learning tasks and building a community of AI programmers.

The bet paid off, with Nvidia now dominating the vast majority of AI chip sales and becoming the world’s second-most valuable company with a market capitalization of $3.32 trillion, behind only Apple. The company even briefly surpassed Apple in market value.

Intel once considered buying Nvidia but faced opposition from the company's board.

Intel also lost its manufacturing edge to rival TSMC and missed out on the AI boom after making mistakes like not investing in OpenAI.

As Nvidia has become a dominant player in the AI craze, Intel has struggled to keep up. Intel’s market capitalization has now fallen below $1 trillion.

Nvidia's 10-for-1 stock split in June made it easier for investors to buy the company's shares, fueling speculation that Nvidia would soon replace Intel on the Dow Jones.

Spokespeople for Nvidia and Intel declined to comment on the report.

Source: https://tuoitre.vn/co-phieu-tang-170-nvidia-thay-the-intel-tren-chi-so-dow-jones-20241102104721683.htm