Shakeup in the Dow Jones: CNA Takes Center Stage, Replaces Huida in Major Index Overhaul
2024/11/2 09:55
(Updated at 11/2 10:54)
NVIDIA to Replace Intel in Dow Jones Industrial Average
Chip industry giant NVIDIA will replace Intel as a component of the Dow Jones Industrial Average, highlighting changes in the chip manufacturing market and dealing another blow to troubled Intel.
Intel has been a component of the Dow Jones Industrial Average Index for 25 years.
Reuters reported that S&P Dow Jones Indices said today that Huida will join the Dow Jones Index next week along with paint maker Sherwin-Williams, which will replace Dow Chemical Co. (Dow).
Intel once dominated the chip manufacturing industry, but in recent years it has outsourced its manufacturing facilities to a Taiwanese semiconductor manufacturing company, also depriving it of developing generative artificial intelligence (AI) after mistaking it forsaking investment in start-ups. OpenAI. OpenAI will launch AI chatbot ChatGPT by the end of 2022.
Intel’s stock price has fallen 54% this year, the worst performer of the Dow Jones Industrial Average, which is weighted by price, and Intel is the least expensive component.
Intel shares fell 1.6% after hours today, while Huida rose 2.2%.
Intel yesterday expressed optimism about the prospects for its PC and server business, predicting that this quarter’s earnings will be better than expected, but cautioning that there is still “a lot of work to be done.”
Susannah Streeter, director of treasury and markets at British brokerage Hargreaves Lansdowne, said: “Losing its position in the Dow leaves Intel grappling with a painful transition and loss of confidence. It’s another respectable blow for Intel… It means Intel will not be included in index equity funds (ETFs). which tracks the Dow Jones Index, which can further influence stock prices.”
Thanks to the key role played by Huida chips in driving generative AI technology, Huida is now a mainstay of the global semiconductor industry, with its stock price rising sevenfold in the past two years and more than doubling this year alone.