Nvidia replacing fallen icon in Dow stock index after 25-year run

Intel will lose its spot in the Dow Jones Industrial Average after a 25-year run to Nvidia, S&P Dow Jones Indices said Friday, the latest blow to the struggling chipmaker that was among the first two technology firms to be included in the blue-chip index.Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing edge to rival TSMC and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT-owner OpenAI.Intel’s shares have declined 54% this year, making it the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow.The stock fell about 1% to $22.79 in extended trading on Friday, while Nvidia was up more than 2% to $139.17.This development comes a day after Intel expressed optimism about the future of its PC and server businesses, projecting current-quarter revenue above estimates but warning that it had “a lot of work to do.”“Losing the status of Dow Jones inclusion would be another reputational blow for Intel, as it grapples with a painful transformation and loss of confidence,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.“It would also mean that Intel is not included in exchange-traded funds (ETFs) which track the index, which could impact the share price further.”Launched in 1968, the Silicon Valley pioneer sold memory chips before switching to processors that helped launch the personal computer industry.In the 1990s, “Intel Inside” stickers turned commodity electronic components into premium products, and eventually became ubiquitous on laptops.Intel’s revenue was $54 billion in 2023, down nearly one-third from 2021, when Pat Gelsinger took over as CEO.Analysts expect Intel to report its first annual net loss this year since 1986.The company is worth less than $100 billion for the first time in 30 years.That pales in comparison to Nvidia, which is sitting at a $3.32...