Nvidia joins Dow Jones, ousting Intel after 24-year run

AI giant Nvidia joins Dow Jones Industrial Average: Nvidia, a leader in artificial intelligence technology, is set to replace Intel on the prestigious Dow Jones Industrial Average, reflecting the growing importance of AI and advanced computing in the tech industry.

• The change will take effect on November 8, 2024, marking a significant shift in the composition of the influential stock market index.
• Nvidia’s inclusion in the Dow comes after a remarkable two-year period during which its stock price has increased seven-fold, driven by its leadership in AI technology.
• The company’s success is largely attributed to its developments in AI, including the introduction of its Blackwell GPU architecture, which CEO Jensen Huang described as “a processor for the generative AI era.”

Nvidia’s rising influence in tech and entertainment: The company’s impact extends beyond the stock market, with recent recognition in the entertainment industry highlighting its growing importance across sectors.

• Nvidia’s founder and CEO, Jensen Huang, recently accepted a Lifetime Achievement Award at the 76th Engineering, Science & Technology Emmy Awards.
• During his acceptance speech, Huang emphasized the transformative power of AI in computing and its potential to reshape storytelling, production, and viewer experiences in the entertainment industry.

Intel’s departure from the Dow: The replacement of Intel with Nvidia marks the end of an era for the long-standing tech giant and reflects the changing dynamics of the technology sector.

• Intel had been a part of the Dow Jones Industrial Average for 25 years, representing a significant period of the personal computer boom.
• However, the company has faced challenges in recent years, with its shares plummeting 54% in 2024 alone.
• Founded in 1968, Intel was instrumental in the early development of Silicon Valley, initially focusing on memory cards before shifting to processors during the rise of personal computers.

Nvidia’s journey to success: The company’s path to becoming a tech giant was not without its challenges, showcasing the resilience and innovation that have become hallmarks of the AI leader.

• Founded in 1993, Nvidia faced early setbacks, including the failure of its NV1 graphics accelerator and a collapsed deal with Sega.
• The company’s turnaround came with the release of its RIVA 128 graphics card in 1996, which sold over 1 million units in about four months.
• This success established Nvidia as a leader in computer graphics, setting the stage for its future dominance in AI and advanced computing.

Additional changes to the Dow: The latest round of updates to the Dow Jones indexes includes other notable additions beyond Nvidia.

• Paint manufacturer Sherwin-Williams will also join the Dow Jones Industrial Average.
• Vistra, a retail electricity and power generation company, is set to be added to the Dow Jones Utility Average.

Implications for the tech industry: Nvidia’s inclusion in the Dow Jones Industrial Average signals a broader shift in the technology landscape and investor priorities.

• The move underscores the growing importance of AI and advanced computing in driving innovation and economic value.
• It also highlights the challenges faced by traditional tech giants like Intel in adapting to rapidly evolving technological trends.
• As AI continues to transform various industries, companies at the forefront of this technology, like Nvidia, are likely to see increased attention from investors and industry observers.