The Dow Jones Industrial Average (DJIA) is determined from the closing prices of 30 blue-chip stocks listed on the New York Stock Exchange (Nasdaq).

This is an important indicator of the stock market and reflects, to some extent, the "health" of the world's largest economy .

Nvidia Bloomberg
Nvidia's stock has surged since 2023. Photo: Bloomberg

Starting November 8th, Nvidia will replace Intel in this list of 30 blue-chip stocks, indicating a shift in the semiconductor industry.

In 2024, Nvidia's stock price increased by 170% after rising nearly 240% in 2023. The semiconductor company's market capitalization reached over $3.3 trillion, second only to Apple.

Companies like Microsoft, Meta, Google, and Amazon are buying Nvidia GPUs like the H100 in large quantities to build AI training computing clusters. The company says the demand for its next-generation AI GPU, Blackwell, is "crazy."

With the addition of Nvidia, four of the world 's six trillion-dollar technology companies are now included in the Dow Jones index. The two names not yet on the list are Meta and Alphabet.

Intel's story is the complete opposite of Nvidia's. Once the world's dominant computer chip manufacturer, Intel lost market share to AMD and has yet to make significant progress in AI.

Intel's stock has fallen by more than half its value this year as the company faces new manufacturing and competitive challenges in the CPU sector. Intel has just approved plans to lay off 16,500 employees and downsize its real estate holdings.

This is the first change in the Dow Jones index since February, when Amazon replaced Walgreens Boots Alliance.

(According to CNBC)