Nvidia CEO Jensen Huang speaks during the launch of the Gefion supercomputer, the new AI-powered supercomputer built in collaboration with EIFO and NVIDIA at the Vilhelm Lauritzen station in Kastrup, Denmark, October 23, 2024.
Ritzau Scanpix | Mads Claus Rasmussen | Via Reuters
Nvidia It replaces a competing chip maker Intel In the Dow Jones Industrial Average, a dramatic change in the leading index that reflects the boom in artificial intelligence and a major shift in the semiconductor industry.
Intel shares fell 1% in extended trading on Friday. Nvidia shares rose 1%.
The switch will take place on November 8th. Sherwin Williams will replace Dow company. Standard & Poor's Dow Jones said in a statement.
Nvidia shares are up more than 170% so far in 2024 after jumping nearly 240% last year, as investors rushed to get a share of the artificial intelligence chip maker. Nvidia's market cap has risen to $3.3 trillion, ranking second only to Nvidia apple Among publicly traded companies.
Companies including microsoft, dead, Google and Amazon They buy Nvidia graphics processing units (GPUs), like the H100, in huge quantities to build clusters of computers for their AI work. Nvidia's revenue has doubled in each of the past five quarters, and at least tripled in three of them. The company noted that demand for its next-generation AI GPUs called Blackwell is “insane.”
With the addition of Nvidia, four of the six trillion-dollar technology companies are now included in the index. The two that are not in the Dow Jones are Alphabet and Meta.
While Nvidia was on the rise, Intel was declining. Intel, once the dominant computer chip maker, has long lost market share to itself Advanced micro devices He has not made much progress in the field of artificial intelligence. Intel shares have fallen by more than half this year as the company faces manufacturing challenges and new competition for its central processors.
Intel said in a filing this week that the Board's Audit and Finance Committee approved cost and capital reduction activities, including reducing headcount by 16,500 employees and reducing its real estate footprint. The job cuts were originally announced in August.
The Dow Jones Index has 30 components and is weighted by the share price of individual stocks rather than their overall market capitalization. Nvidia put itself in a better position to join the index in May, when the company announced a 10-for-1 stock split. Although the move did not affect its market value, it did reduce the price of each share by 90%, allowing the company to… It becomes part of the Dow Jones Index without having a very heavy weight.
The switch is the first change for the index since February, when Amazon replacing Walgreens Shoe Alliance. Over the years, the Dow Jones has been playing catch-up in gaining exposure to the largest technology companies. The stocks in the index are selected by a panel of S&P Dow Jones indices.
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