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Chipmaker Nvidia will replace struggling rival Intel in the Dow Jones Industrial Average after its soaring stock price made it the world’s second-most valuable publicly traded company.
S&P Dow Jones Indices said in a statement Friday that the move, effective October 8, would “ensure a more representative exposure to the semiconductors industry.”
Nvidia stock, which closed Friday at $135.37 a share, is up more than 180% this year, and its price continued to climb in after-hours trading to $139.31.
Shares in Nvidia also rose about 240% last year, helping grow its market valuation to $3.3 trillion, behind only Apple, according to CNBC.
The company has seen orders surge for its graphics processing units as Microsoft, Meta, Google and Amazon bought large amounts for their artificial intelligence data centers, the network said.
Last month, Nvidia CEO Jensen Huang told CNBC that demand for in its next-generation chip, called Blackwell, was “insane.”
Meanwhile, Intel on Thursday reported a third-quarter loss of $16.6 billion, the largest in its 56-year history, with CEO Pat Gelsinger telling analysts, “We need to fight for every inch and execute better than ever before,” according to the New York Times.
Intel stock closed Friday at $23.20 a share, up 7.8% for the day but down 51.5% since the start of the year.
