Putting an end to Intel’s 25-year presence on the blue-chip index, Nvidia is set to replace the chip giant on the Dow Jones Industrial Average. This highlights the evolving landscape of the semiconductor industry and represents another challenge for Intel. Nvidia will join the index next week.
Intel, in recent years, has lost its manufacturing lead to competitors like TSMC and has missed opportunities in the generative AI sector, notably by not investing in OpenAI, the parent company of ChatGPT.
Intel’s stock has plummeted 54% this year, turning out to be the worst performer on the index and leaving it with the lowest stock price in the price-weighted Dow.
Founded in 1968, Intel began as a memory chip manufacturer before pivoting to processors that played a key role in the rise of the personal computer industry. The iconic ‘Intel Inside’ stickers transformed basic electronic components into sought-after products, becoming a common sight on laptops.
In 2023, Intel reported revenues of $54 billion, a decline of nearly one-third from 2021, the year Pat Gelsinger became CEO. Analysts predict that the company will post its first annual net loss since 1986.
Nvidia’s rise is largely attributed to an unrelenting demand for its AI chips, essential to the growth of artificial intelligence. This achievement marks a significant milestone for Nvidia, a company originally known for its gaming processors. The stock has climbed around 18% in October, fuelled in part by OpenAI’s recent $6.6 billion funding round and continuing AI-driven investments.
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