Nvidia replaces Intel in Dow in AI-driven transformation of

Nvidia replaces Intel in the Dow Jones Industrial Average, ending a 25-year run for a semiconductor leader that has fallen behind as Nvidia monopolizes the market for chips that run artificial intelligence systems.

Paint maker Sherwin-Williams will also replace chemical company Dow Inc. Among the companies that make up the average 30 stocks.

The changes, which will take effect on November 7, “were initiated to ensure more representative exposure to the semiconductor industry and materials sector, respectively,” S&P Dow Jones Indices said on Friday.

Because the Dow is price-weighted, “stocks with consistently low prices have little impact,” she added.

Dow, a major producer of chemicals and plastics and no relation to the company of the same name behind the index, was also the smallest company in the Dow Jones index by market capitalization.

Intel’s stock price is down more than 50% so far this year to $23.20. The California chipmaker on Thursday reported third-quarter revenue of $13.3 billion, down 6% from the same period last year.

Intel CEO Pat Gelsinger said at the time that the company was “acting with urgency” on a plan to cut costs and simplify its portfolio. By contrast, Nvidia shares have risen more than 173% this year to a price of $135.40.

Unlike Intel, Nvidia designs its own chips but does not manufacture them, relying heavily on Taiwan Semiconductor Manufacturing Company, an Intel competitor.

In another indicator, the Dow Jones utility index, Texas-based energy company Vistra, will replace Virginia-based AES.

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