Technology company Nvidia will replace Intel in the Dow Jones Industrial Average on November 8 to provide “more representative exposure to the semiconductor industry,” the index’s owner announced Friday.
In a statement, S&P Dow Jones Indices also announced that paint manufacturer Sherwin-Williams will replace the industrial Dow Inc to improve the index’s exposure to the basic materials sector.
Nvidia, the leading chipmaker in the field of artificial intelligence (AI), has appreciated nearly 170% this year and is the world’s second-largest listed company, while Intel sits at the other end of the scale: in full restructuring which reduced its capitalization by half.
The Dow Jones index has 30 components that the manager selects according to a stock price weighting system so that it is representative of the American economy.
Last February, another major technology company entered the index, when Amazon has replaced Walgreens.
