After the close of trading on Friday, S&P Dow Jones Indices announced that AI giant NVIDIA Corporation (NASDAQ:NVDA) will replace Intel Corporation (NASDAQ:INTC) in the Dow Jones Industrial Average.
The change will take place effective prior to the market open of trading on Friday, November 8, 2024.
S&P Dow Jones Indices said the changes were made to “ensure a more representative exposure to the semiconductors industry.”
Year-to-date, NVIDIA’s stock is up 173%, while Intel is down 54%. NVIDIA is the dominant player in the AI chip sector. Analysts at BofA Securities expect AI accelerator demand to grow to $280 billion by 2027 and more than $400 billion over time, with NVIDIA garnering 75% of the market share.
In addition to the NVIDIA/Intel change, S&P Dow Jones Indices announced that Sherwin-Williams Co (NYSE:SHW) will replace Dow Inc (NYSE:DOW) in the Dow Jones Industrial Average.