The end of the 25-year reign of the blues; Nvidia replaces Intel in the Dow Jones Industrial Average
Nvidia replaces Intel in the Dow Jones Industrial Average, ending Intel’s 25-year reign. Nvidia’s undisputed leadership in the field of artificial intelligence and Intel’s financial problems caused a financial turn of 180 degrees between Nvidia and Intel.
To remind you, the Dow Jones Industrial Average is the economic index of the United States stock market, which is published and updated by the Wall Street Journal. On May 26, 1896 (June 6, 1275), Charles Henry Dow, the editor of the Wall Street Journal and the founder of the Dow Jones Company, published the said index for the first time.
The CNBC report indicates that Nvidia’s breakthrough will occur on November 8, 2024 (18 Aban 1403), three months after the news of Intel’s financial problems broke. The change had already started with the sharp fall in Intel’s stock price (more than 30% overnight) following the publication of disastrous financial results.
earlier Pat GelsingerIntel’s CEO, in a conversation with analysts, announced that the company’s decision to increase the production speed of the Core Ultra series processors increased the company’s financial losses, from a net profit of $1.48 billion to a net loss of $1.61 billion. Intel’s financial loss affected 15,000 Blue Team employees.
With the fall of Intel, Nvidia’s stock price jumped significantly by steering in the field of artificial intelligence; So that for a short time it became the most valuable company in the world with a market value of 3.34 trillion dollars. Although the green team dropped to second place behind Apple, it experienced a remarkable rise in a short period of time.
Nvidia stock price was around $14.16 in November 2022 and reached $45.01 a year later with 218% growth. Today, the shares of the green team reached $135.37 and experienced a jump of 201% in the last 12 months. This means that Nvidia’s value increased by more than 850% in just two years.
Intel entered the Dow Jones Industrial Average in 1999; But the company’s poor performance in artificial intelligence ended its 25-year reign. Nvidia will be the fourth technology company valued at more than $1 trillion to enter the Dow Jones after Microsoft, Apple and Amazon. Amazon entered the Dow after selling Walgreens this February.
A five-person committee including Wall Street Journal editors selects the Dow Jones index companies. There are no special rules for companies; But factors such as market value, leadership, stable financial growth and investors’ interest are not unaffected.
Nvidia’s entry into the list of Dow Jones companies shows the positive outlook of the financial markets towards the future of artificial intelligence and proves that Nvidia is on the right track.
