Nvidia will replace its rival Intel in the prestigious Dow Jones Industrial Average. The landmark replacement comes amid a boom in artificial intelligence technologies and Nvidia’s dominance in the high-tech segment.
Image source: NVIDIA
Nvidia’s market capitalization yesterday reached an impressive $3.5 trillion, second only to Apple among public companies, CNBC reports. The company’s shares are up more than 170% in 2024 after rising about 240% last year, thanks in large part to major tech companies including Microsoft, Meta✴, Google and Amazon buying Nvidia GPUs in particular. model H100, for the development of your AI projects. At the same time, demand for a new generation of Blackwell AI chips, according to the company, has reached “crazy” levels.
While Nvidia is experiencing rapid growth, Intel is going through difficult times. The company is losing market share to AMD and is showing minimal progress in artificial intelligence. Intel shares have fallen by more than half this year due to manufacturing problems and increased competition. At the same time, the company recently announced the reduction of 16,500 employees and a slowdown in the construction of production facilities.
Nvidia also found itself in a good position to join the Dow Jones after its 10-for-1 stock split in May. While the split didn’t impact the company’s market capitalization, it did reduce the price of each share by 90%, allowing the company to not have too much of a shareholding in the stock market. per share among other companies included in the Dow Jones index.