Nvidia is set to take Intel’s place on the Dow Jones Industrial Average, marking the end of Intel’s 25-year tenure as a component of the index. This change reflects Nvidia’s dominance in the market for artificial intelligence chips. Additionally, Sherwin-Williams will replace Dow Inc. in the list of 30 stocks that make up the average. S&P Dow Jones Indices announced on Friday that these updates, effective November 7, aim to provide a more accurate representation of the semiconductor and materials sectors.
The announcement also noted that since the Dow is price-weighted, stocks with consistently lower prices have little influence on the overall index. Dow Inc., a leading producer of chemicals and plastics, has been the smallest company in terms of market capitalization within the Dow.
In a related change, Texas-based Vistra will replace Virginia’s AES Corp. in the Dow Jones Utility Average.