The decline of the component manufacturer will not end – Nvidia replaces Intel in the Dow Jones

A US company that manufactures artificial intelligence chips Nvidia wedge component manufacturer Intel’s ohi Dow Jones to the Industrial Average (DJIA) stock index. About that news news agency Reuters.

Intel managed to be in the index for 25 years. Intel, which was at the top of the industry at the time, has now been left out of the artificial intelligence boom, while Nvidia has been on the rise due to the recent leaps in artificial intelligence.

The pace of Intel’s product development has lagged behind that of its Taiwanese competitor, TSMC. In addition, Intel refused the investment opportunity offered to it in OpenAI, the owner of the ChatGPT service.

As Intel searches for its direction, the company’s stock has fallen by more than 50 percent since the beginning of the year. The company is the DJIA’s weakest performing stock and its share value is the lowest in the price-weighted index.

If Intel is left out of the DJIA index, the stock will also stop receiving pull help from the funds that follow the index. As a result, the stock may fall even further.

On Friday’s secondary market, Intel’s share was down about 1.9 percent, while Nvidia’s share price rose 2.9 percent.

Good news and bad news

On Thursday, Intel announced that due to the good development of its computer and server business, the company’s net sales would exceed guidance this quarter. At the same time, however, the company held back by stating that there is still a lot of work to be done.

On the other hand, it is good to note that Intel’s turnover of 54 billion dollars is almost a third lower than in 2021, when the company’s current CEO Patrick Gelsinger started his job.

According to Reuters, analysts expect Intel to make a loss this year for the first time since 1986. The company’s market value has also broken below the $100 billion mark for the first time in 30 years.

At the same time, Nvidia’s market value is well over three trillion. The company is the second largest in the world in terms of market value. With market values ​​fluctuating, Nvidia has even been the largest company in the world in terms of market value for a moment.