Published , by Asif Khan
Published , by Asif Khan
NVIDIA will replace Intel in the Dow Jones Industrial Average (DJIA). The largest semiconductor company on Earth has seen its stock skyrocket over 170% in 2024 while Intel shares have languished.
The switch will take place on November 8, 2024. Sherwin Williams will also replace Dow Inc. in the index as well. S&P Dow Jones Indices posted the announcement of these changes after the market closed on Friday.
Being added to the DJIA can be a blessing or a curse for companies. The price-weighted index is swapping out lower share price Intel for NVIDIA, so the semiconductor sector will have more influence over day-to-day price fluctuations. NVIDIA is now one of the largest components of the S&P 500, Nasdaq 100, and Dow Jones Industrial Average. Some index funds, mutual funds, and hedge funds may have to increase holdings of NVDA stock as a result of today's news, but with that increased demand comes a tighter correlation to the overall stock market fluctuations.
This is just another win for NVIDIA and highlights the ongoing struggles at Intel. The former titan of the 2000 tech bubble has been relegated.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
Full Disclosure:
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long NVIDIA via NVDA shares