Jensen Huang, CEO of Nvidia, speaks at the launch of the supercomputer Gefion, a new AI supercomputer created in collaboration between EIFO and NVIDIA, at the Wilhelm Lauritsen Terminal in Kastrup, Denmark, on October 23, 2024.
Ritzau Scanpics | Mads Klaus Rasmussen | Via Reuters
Nvidia replace a rival chipmaker intel The blue-chip stock index’s large fluctuations reflect the boom in artificial intelligence and major changes in the semiconductor industry.
Intel shares fell 1% in after-hours trading on Friday. Nvidia stock rose 1%.
The changeover will take place on November 8th. sherwin williams I will exchange Dow Corporation. S&P Dow Jones said in a statement that the index had been affected.
Nvidia stock is up more than 170% so far in 2024 after surging about 240% last year as investors rushed to get a piece of the AI ​​chip maker. Nvidia’s market capitalization has ballooned to $3.3 trillion. apple Among listed companies.
Companies including Microsoft, Meta, google and Amazon is purchasing large quantities of Nvidia graphics processing units (GPUs), such as the H100, to build clusters of computers for AI work. Nvidia’s revenue has more than doubled in each of the past five quarters, and at least tripled in three of those quarters. The company hints that demand for its next-generation AI GPU, called Blackwell, is “insane.”
With the addition of Nvidia, the index now includes four of the $6 trillion tech companies. Not included in the Dow stocks are Alphabet and Meta.
While Nvidia is soaring, Intel is slumping. Intel, long the dominant maker of PC chips, has lost market share. advanced micro device And AI has made little progress. Intel stock has fallen by more than half this year as the company struggles with manufacturing challenges and new competition for central processors.
Intel said in a filing this week that its board of directors’ audit and finance committee has approved cost and capital reduction actions, including cutting 16,500 employees and reducing real estate. The layoffs were originally announced in August.
The Dow Jones Industrial Average has 30 components and is weighted by individual stock prices rather than market capitalization. Nvidia announced a 10-for-1 stock split in May, putting it in a good position to join the index. Although it had no effect on market capitalization, the move reduced the price of each stock by 90%, allowing the company to become part of the Dow without having too much weight.
This switch marks the first change in the index since February. Amazon replaced walgreens boots alliance. For years, the Dow Jones Industrial Average has been playing catch-up to gain exposure to the biggest technology companies. Stocks for inclusion in the index are selected by a committee of S&P Dow Jones Indices.
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