NEW YORK (AP) – Nvidia replaces Intel on the Dow Jones Industrial Average, ending a 25-year history of the pioneering semiconductor company falling behind as Nvidia cornered the market for chips that run artificial intelligence systems. will be hit.
Paint maker Sherwin-Williams also plans to go public, replacing chemical company Dow in the 30-stock average.
S&P Dow Jones Indices said Friday that the changes, which will take effect Nov. 7, “were initiated to make our exposures to the semiconductor industry and materials sectors more representative, respectively.”
Additionally, because the Dow is price-weighted, “the impact of stocks with persistently low stock prices is minimized,” he added.
Dow is a major manufacturer of chemicals and plastics, and is the smallest company in the Dow by market capitalization, although it is not related to the similarly named companies that make up the index.
Intel’s stock price has fallen more than 50% since the beginning of the year, to $23.20. On Thursday, the California chipmaker announced third-quarter sales of $13.3 billion, down 6% from a year earlier.
Intel CEO Pat Gelsinger said at the time that the company is “urgently working” on plans to cut costs and simplify its portfolio. By contrast, Nvidia’s stock price has risen more than 173% this year to $135.40.
Unlike Intel, Nvidia designs but does not manufacture its own chips, relying heavily on Intel’s rival Taiwan Semiconductor Manufacturing Company.
In another index, Texas-based energy company Vistra will replace Virginia-based AES Corp. as the Dow Jones Utilities Average.
