US chip-making giant Intel will be replaced by rival company Nvidia on the Dow Jones Industrial Average index.
S&P Dow Jones Indices, the operator of the 30-company index of firms on the New York Stock Exchange and Nasdaq, announced the change on Friday. The new index will go into effect on November 8.
Intel joined the Dow in 1999. But in recent years, it has been slow to take in demand for AI-related products. It posted a huge net loss for the July-to-September quarter.
Meanwhile, Nvidia has grown rapidly by developing chips for AI technologies. It has led the AI boom that prompted prices of related stocks to soar.
The operator of the index said the change was initiated to ensure a more representative exposure to both the semiconductor industry and materials sector.
US media reports the swap reflects a reversal of fortunes within the tech industry and would have been unthinkable a few years ago.
The replacement is likely to symbolize a change in the competitive strength within the semiconductor industry.
S&P Dow Jones Indices, the operator of the 30-company index of firms on the New York Stock Exchange and Nasdaq, announced the change on Friday. The new index will go into effect on November 8.
Intel joined the Dow in 1999. But in recent years, it has been slow to take in demand for AI-related products. It posted a huge net loss for the July-to-September quarter.
Meanwhile, Nvidia has grown rapidly by developing chips for AI technologies. It has led the AI boom that prompted prices of related stocks to soar.
The operator of the index said the change was initiated to ensure a more representative exposure to both the semiconductor industry and materials sector.
US media reports the swap reflects a reversal of fortunes within the tech industry and would have been unthinkable a few years ago.
The replacement is likely to symbolize a change in the competitive strength within the semiconductor industry.
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Summary
Intel, long-time member of Dow Jones Industrial Average, to be replaced by rival Nvidia on November 8. This change is due to Intel's sluggish performance in AI-related products, contrasting with Nvidia's rapid growth in the same sector. The swap signifies a shift within the tech industry and
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ID: ca1085cd-cac9-439a-bac2-dc2dbb1d3adb
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20241104_04/
Date: Nov. 4, 2024
Created: 2024/11/05 07:00
Updated: 2025/12/08 09:12
Last Read: 2024/11/05 07:47