Intel gets kicked out of the Dow

CNN
—

Intel will lose its spot in the Dow Jones Industrial Average after a 25-year run to Nvidia, S&P Dow Jones Indices said Friday, the latest blow to the struggling chipmaker, which was among the first two technology companies to be included in the blue-chip index .

Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing advantage to rival TSMC and missed out on the generative artificial intelligence boom after missteps, including passing on an investment in ChatGPT owner OpenAI.

Shares of Intel ( INTC ) are down 54% this year, making it the worst performer on the index and leaving it with the lowest-priced stock on the price-weighted Dow.

The stock fell about 1% in extended trading Friday, while Nvidia ( NVDA ) rose 1.5%.

Launched in 1968, the Silicon Valley pioneer sold memory chips before switching to processors that helped launch the personal computer industry.

In the 1990s, “Intel Inside” stickers transformed electronic components into quality products and eventually became ubiquitous on laptops.

Nvidia has emerged as a cornerstone of the global semiconductor industry thanks to the essential role its chips play in powering generative AI technologies, which has driven a sevenfold rise in its shares over the past two years.

The company’s shares have more than doubled this year alone.

Once popular only among gamers who chased PCs with Nvidia’s graphics processors, the company is now the second most valuable in the world and is seen as a barometer of the AI ​​market.

The company’s 10-for-one stock split in June also helped pave the way for its addition to the index, making its soaring shares more accessible to retail traders.