Intel loses place in the Dow Jones – Nvidia takes the helm

Intel, once a giant in the chip industry, is being removed from the Dow Jones Industrial Average after 25 years. This news adds further headwind for the already struggling company, which, along with another technology giant, was one of the first in its industry to be included in the prestigious index. In recent years, the chip giant has lost its dominance to competitor TSMC and has lagged behind in the boom of generative artificial intelligence, particularly by missing investments in OpenAI. Intel's stock price has recorded a decline of 54% this year, making the company the worst performer in the index and leaving the lowest stock price in the price-weighted Dow. Nevertheless, Intel's stock rose about 1% in after-hours trading on Friday, while Nvidia increased by 1.5%. Founded in 1968 in the heart of Silicon Valley, Intel began with memory chips before ushering in the era of personal computers with processors. In the 1990s, the slogan "Intel Inside" revolutionized the perception of electronic components, turning them into premium products on every laptop. Nvidia, on the other hand, has established itself as an indispensable player in the global semiconductor industry, as its chips play a crucial role in advancing generative AI technologies. This development led to a sevenfold increase in shares over the past two years. This year, the shares have more than doubled, making the company the second most valuable in the world and serving as an indicator for the AI market. Nvidia's 10-to-1 stock split in June helped make the stock more accessible to individual investors—a further factor that paved the way for inclusion in the Dow Jones.