Intel is thrown out of the Dow

CNN
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According to S&P Dow Jones Indices, Intel will lose its place in the Dow Jones Industrial Average after competing against Nvidia for 25 years. It's the latest blow for the struggling chipmaker, which was among the first two tech companies to join the Blue Index. Chip index.

Intel, once the dominant force in chipmaking, has ceded its manufacturing lead to rival TSMC in recent years and missed out on the generative artificial intelligence boom after the company made missteps including passing on an investment in ChatGPT owner OpenAI.

Intel stock (INTC) has fallen 54% this year, making it the worst performer in the index and the lowest share price in the price-weighted Dow.

The stock fell about 1% in extended trading Friday, while Nvidia (NVDA) rose 1.5%.

Founded in 1968, the Silicon Valley pioneer sold memory chips before branching out into processors that helped propel the personal computer industry.

In the 1990s, “Intel Inside” stickers transformed standard electronic components into premium products and eventually became ubiquitous on laptops.

Nvidia has become a cornerstone of the global semiconductor industry thanks to the essential role its chips play in advancing generative AI technologies, driving its shares to rise seven-fold in the past two years.

This year alone, the company's shares have more than doubled.

Once popular only with gamers looking for PCs with Nvidia's graphics processors, the company is now the second most valuable company in the world and is considered a barometer for the AI ​​market.

The company's 10-for-1 stock split in June also helped pave the way for inclusion in the index, making its soaring stocks more accessible to retail traders.