Nvidia is included in the Dow for the first time… Intel ‘excluded’ for the first time in 25 years :: Sympathetic Media Newsis ::

Nvidia was added to the Dow Jones Industrial Average on the 8th

Intel, which came into existence in 1999, ‘exits’ after 25 years.

(Seoul = Newsis) Reporter Gwang-on Park = NVIDIA, a leader in the field of artificial intelligence (AI) semiconductors, will push out its competitor Intel and be included in the Dow Index, which is composed of ’30 representative U.S. companies.’

According to CNBC on the 1st (local time), Standard & Poor’s (S&P) Dow Jones Indices issued a statement today and announced that Nvidia will be officially incorporated into the Dow Jones Industrial Average (DJIA) on the 8th.

In addition, it was added that Intel, which entered the Dow index in 1999, is excluded.

DJIA is a global stock index calculated by Dow Jones of the United States based on the stocks of 30 blue-chip companies listed on the New York Stock Exchange. It is considered one of the three major stock indices along with the NASDAQ and S&P 500.

When Dow Jones determines that a specific stock among 30 stocks can no longer represent its industry, it excludes that stock and replaces it with stocks of a new company that can represent that industry.

In particular, Dow Jones is said to reflect major changes in AI-related industries such as semiconductors following the recent AI boom.

CNBC said, “Nvidia’s stock price has risen more than 170% this year alone, after rising about 240% last year. This is because investors are making every effort to buy parts of the AI ​​chip maker.”

In fact, NVIDIA is estimated to already occupy more than 80% of the AI ​​chip market share.

Accordingly, major big tech companies such as Microsoft (MS), Facebook parent company Meta, Google, and Amazon are lining up to purchase NVIDIA’s graphics processing units (GPUs) in large quantities.

On the other hand, Intel was once a symbol of innovation in the semiconductor industry not only in the United States but also around the world, but is evaluated to have missed the opportunity to dominate the AI ​​market due to poor investment.

Intel had opportunities such as the acquisition of NVIDIA in 2005 and investment in Open AI, a ‘ChatGPT developer’ in 2017-2018, but gave up, and while overlooking the importance of GPU, NVIDIA dominated the AI ​​semiconductor market.

Poor performance continues due to rumors of business failure and the sale of some businesses.

Intel announced on the 31st of last month that it recorded sales of $13.3 billion and an operating loss of $2.4 billion in the third quarter of this year (July-September). In particular, sales were within the $12.5 billion to $13.5 billion level that Intel predicted in the second quarter, but turned into a deficit compared to the previous quarter.

CNBC commented, “While Nvidia is soaring, Intel has entered a recession,” and “Intel, which has long been a major manufacturer of PC chips, has lost market share to its competitor, AMD.”

“In the meantime, Intel has made little progress in AI, and its stock price has fallen by more than half this year,” he added, adding, “Intel is struggling with manufacturing issues and new competition for central processors.”

◎ Sympathetic media Newsis (email protected)