According to CNBC, NVIDIA will officially join the Dow Jones Industrial Average (DJIA) on November 8, 2024, replacing Intel.
This historic shift underscores the profound impact of the AI boom on semiconductors, technology, and global markets—and comes just three months after Intel reported severe financial struggles.
Intel’s Decline: From Tech Titan to Market Exit #
Intel revealed disastrous financial results in August 2023, with stock prices plunging more than 30% overnight. Persistent losses in its data center and foundry businesses dragged Q2 2024 into a $1.6 billion loss.
The fallout led to massive layoffs, affecting more than 15,000 employees, signaling the company’s struggle to stay competitive in the era of AI-driven computing.
NVIDIA’s Meteoric Rise Fueled by AI #
In stark contrast, NVIDIA’s market value has skyrocketed thanks to the explosive growth of artificial intelligence.
- Market Cap: $3.34 trillion, making it the second-most valuable company in the world, behind Apple.
- Stock Performance:
- November 2022 → $14.16/share
- November 2023 → $45.01/share (+218%)
- November 2024 → $135.37/share (+201% YoY)
In just two years, NVIDIA’s valuation surged by more than 850%, an unprecedented climb in modern stock market history.
End of Intel’s 25-Year Run in the Dow #
Intel first entered the DJIA in 1999, symbolizing the rise of the PC era. But its inability to maintain leadership in AI and advanced semiconductors has ended its 25-year run.
NVIDIA now joins Microsoft, Apple, and Amazon as the fourth trillion-dollar tech giant in the index. Interestingly, Amazon was only added in February 2024, replacing Walgreens, marking another sign of how the DJIA is adapting to the digital economy.
What the Dow Jones Industrial Average Represents #
The Dow Jones Industrial Average (DJIA), created in 1896 by Charles Dow and Edward Jones, is one of the oldest and most influential stock market indices in the world.
It is composed of 30 leading U.S. companies across key sectors including:
- Technology
- Finance
- Healthcare
- Industrial
- Consumer goods
While it originally focused on industrial companies, the index has evolved alongside the economy to reflect broader market trends.
The DJIA remains a widely cited barometer of U.S. market health and investor sentiment, with its fluctuations often serving as a global economic signal.
✅ Key Takeaway #
Intel’s exit and NVIDIA’s entry into the Dow highlight a seismic industry shift:
- From the PC era dominated by Intel → to the AI era led by NVIDIA.
- From traditional industrial benchmarks → to technology-driven market leadership.
This change not only cements NVIDIA’s dominance in AI hardware but also reflects how AI is reshaping global finance, technology, and the future of innovation.