FX168 Financial News (North America) - NVIDIA (NVDA) will replace Intel (INTC) as a component stock of the Dow Jones Industrial Average on November 8, marking one of the important restructurings of the blue-chip index.

This change reflects the Dow Jones Index further tilting towards the AI-driven technology sector by including NVIDIA, the main supplier of AI GPUs, while removing Intel, a semiconductor company facing growth pressures in recent years.

As of now, NVIDIA's stock price has risen by over 180% in 2024, as investors see it as a major beneficiary of the AI boom. NVIDIA has rapidly risen with its datacenter AI processors and is one of the few companies with a market cap exceeding 3 trillion USD.

On the other hand, Intel's stock price has fallen by 51% year to date due to manufacturing challenges, new competition in central processing, and missing out on the AI trend.

In after-hours trading on Friday, Intel's stock price fell by 1%, while NVIDIA's stock price rose by 1%.

The Dow Jones Index consists of 30 component stocks, weighted by stock price rather than market cap, making companies with lower prices have limited impact on the index.

(Source: S&P Global)

Additionally, S&P Global stated in the announcement that this adjustment also includes Sherwin-Williams Co. (SHW) replacing Dow Chemical, Inc. (DOW) to enhance the representation of the materials industry in the index.

The Dow Jones Utility Average Index will also see the addition of Vistra Corp. (VST), replacing AES Corp. (AES), to better reflect the positions of independent electrical utilities and renewable electrical utilities in the utility industry.

S&P Global stated that, to maintain the accurate reflection of the Dow Jones Index on the U.S. stock market, the index divisor will be updated before the market opens on November 8, 2024, and will be provided through the S&P Dow Jones Indices FTP website to ensure a smooth transition of the index structure.

As a global leader in index-based financial market data and research, S&P Dow Jones Indices cover multiple asset classes with diversified index products, providing investors with diverse tools to measure and trade in the market. Since establishing its first index in 1884, S&P Dow Jones Indices have continually driven innovation in financial markets.