标普After intel's stock price plummeted and its weight approached "weightlessness", nvidia is about to replace it as a component stock of the Dow, marking the change of chip giants.
$NVIDIA (NVDA.US)$ 即将被纳入道琼斯工业指数，这一消息在上周五公布。英伟达的市值已飙升至超0.033 million
亿美元，而此次调整的关键原因在于 $Intel (INTC.US)$ 的市值暴跌，今年以来英特尔的股价已跌去一半，几乎在道指中的权重消失殆尽。
标普$Dow Jones Industrial Average (.DJI.US)$Senior analyst Howard Silverblatt of the company pointed out: "A crucial part of the decision is that the chip sector is not fully represented in the index." At the close last Friday, Intel's stock price was only $23 per share, no longer suitable as a component of the Dow Jones.
S&P Dow Jones Indices announced that Intel will be replaced by its competitor Nvidia on November 8th. Nvidia has become the world's second largest publicly traded company in terms of market cap, trailing only meta platforms. Among the six companies with the highest market cap in the technology sector, except for Google's parent company, $Apple (AAPL.US)$ In , the rest of the four companies will be included in the Dow Jones. $Alphabet-A (GOOGL.US)$And$Meta Platforms (META.US)$Among the six companies with the highest market cap in the technology sector, except for Google's parent company, the remaining four will be included in the Dow Jones.
The Dow is a price-weighted index, which means the weight of stocks is based on stock prices, not market cap. After being defeated by Nvidia in the field of artificial intelligence and losing market share in its core PC and datacenter processor markets, Intel's stock price plummeted, becoming the lowest weighted company in the Dow, accounting for less than 0.5%.
After Nvidia entered the Dow Jones, the technology sector's weight in the index will increase from 18.9% to approximately 19.5%, despite its market cap weight in the US market already accounting for about 58%. At the same time,$Sherwin-Williams (SHW.US)$Dow Inc. will be replaced in the Dow Jones,$Dow Inc (DOW.US)$this will increase the materials sector's weight from less than 1% to around 5%.
Alphabet and Meta's inclusion may continue to be awaited, especially because Alphabet's Class A and Class C stocks are publicly traded, if Meta enters the Dow Jones, with the current stock price of about $562, it will have the highest weight, surpassing$UnitedHealth (UNH.US)$However, considering that the technology industry already accounts for a large proportion, there is currently no obvious adjustment space to accommodate these Silicon Valley giants.
Silverblatt summarized, "To add a new member, an existing member must be removed, the Dow will not become 31 companies."
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