Nvidia’s shares have surged over 170% in 2024, following a 240% jump last year, while Intel’s stock has declined by more than 50%, highlighting the evolving dynamics within the semiconductor industry.
Nvidia is set to replace Intel in the Dow Jones Industrial Average on November 8, marking a key shift in the semiconductor sector. This announcement, made by S&P Dow Jones, highlights the rising demand for artificial intelligence (AI) and Nvidia’s leading role in powering this transformation. Adding Nvidia to this prestigious index reflects how AI’s influence is rapidly reshaping financial markets. Sherwin-Williams, the renowned paint maker, will also join the index, taking the place of Dow Inc. Such changes reveal how companies driving technological innovation are making their mark on traditionally stable stock market indexes, aligning with wider trends.
Nvidia has experienced an exceptional performance in the stock market, with shares skyrocketing over 170% in 2024 following an impressive 240% surge last year. Major tech players, including Microsoft, Google and Amazon, rely heavily on Nvidia’s advanced graphics processing units (GPUs) to fuel their AI ambitions, which has accelerated Nvidia’s market growth. With a current market cap of $3.3 trillion, Nvidia is now one of the world’s most valuable companies, second only to Apple. This remarkable growth demonstrates the increasing demand of AI-powered technology investments and Nvidia’s revenue has doubled in each of the last five quarters. Demand for its upcoming Blackwell GPU series remains exceptionally high, signaling sustained growth projections.
Meanwhile, Intel has faced a challenging year, with shares dropping over 50% due to heavy competition from AMD and manufacturing challenges. These struggles have led Intel to initiate a restructuring plan that includes workforce reductions and real estate optimization. Nvidia’s entry into the Dow was possible due to the index’s selection method, which weighs companies by share price rather than overall market value. Nvidia’s recent 10-for-1 stock split allowed its inclusion without heavily influencing the index’s weight. This update highlights the Dow Jones commitment to staying current with technology trends and aligning with evolving investor interests.
