Nvidia to Replace Intel in the Dow Jones Industrial Average

Nvidia will replace rival chip manufacturer Intel (NASDAQ: INTC) in the Dow Jones Industrial Average. Intel shares fell by 1% in after-hours trading on Friday, while Nvidia shares rose by 1%. Nvidia will officially take Intel’s place in the index on November 8.

Additionally, it was announced by S&P Dow Jones that Sherwin Williams will replace Dow Inc (NYSE: DOW) in the index.

After a nearly 240% increase last year, Nvidia shares have risen over 170% so far in 2024. The company’s market capitalization has reached $3.3 trillion, making it the second highest among publicly traded companies, after Apple (NASDAQ: AAPL).

The Dow consists of 30 components and is weighted based on the stock prices of individual stocks rather than total market capitalization. Nvidia positioned itself better for inclusion in the index when it announced a 10-for-1 stock split in May. This move, which did not change the company's market value, reduced the price of each share by 90%, allowing Nvidia to be part of the Dow without carrying a disproportionately heavy weight.