Suddenly! Nvidia has become a constituent stock of the Dow Jones Industrial Average, replacing Intel.
On Friday, November 1st Eastern Time, the three major indexes of the US stock market collectively opened high and rose on non farm days, rising more than 1% at one point. As of the close, the Dow Jones Industrial Average rose 0.69%, the Nasdaq rose 0.80%, and the S&P 500 index rose 0.41%.
S&P Dow Jones Indices announced after hours that Nvidia will replace Intel and be included in the Dow Jones Industrial Average, while Sherwin Williams Co. will replace Dow Jones and be included in the Dow Jones Industrial Average. Vistra Corp. will replace The AES Corp. and be included in the Dow Jones Utility Average.
At the same time, Vistra Corp. will replace The AES Corp. and be included in the Dow Jones Utility Average to better reflect the position of independent electricity and renewable energy producers in the utility industry.
The announcement states that the above adjustments will take effect before the opening of the US stock market next Friday, November 8th. With the inclusion of NVIDIA, four out of the six companies in the "trillion dollar market cap club" of the US stock market have been included in the Dow Jones Industrial Average, with only Google's parent company Alphabet and Meta Platforms not yet included. Among them, three stocks with a market value of $3 trillion were fully captured by the Dow Jones Industrial Average, namely Apple, Microsoft, and Nvidia.
With the rapid development of the artificial intelligence industry, companies such as Microsoft, Meta, Google, and Amazon are purchasing large quantities of Nvidia's graphics processing units (GPUs) to build data centers for AI work.
Tianfeng Securities analyst Guo Mingchi stated in a recent research report that the order volume of Nvidia GB200 chip has surged, with Microsoft being the largest customer for this chip. The order volume in the fourth quarter increased 3-4 times, exceeding the total of all other cloud service providers.
For a long time, Intel has been the dominant manufacturer of PC chips, but its market share has been taken away by AMD and TSMC. At the same time, the company has made little progress in artificial intelligence and missed out on investments including OpenAI, owner of ChatGPT.
Intel's stock price, which has been included in the Dow Jones Industrial Average for 25 years, has fallen more than 50% so far this year, ranking at the bottom of the Dow Jones Industrial Average. The company stated in a document this week that the audit and finance committee of the board of directors has approved cost and capital reduction activities, including cutting 16500 jobs and reducing its real estate investments.
As of the close on November 1st local time, Nvidia's stock price was reported at $135.400 per share, up 1.99%, with a cumulative increase of over 173% for the year; Intel reported a price of $23.200 per share, up 7.81%, while the stock price has fallen by over 53% over the year.
Source: Shanghai Securities News, Dachuang Finance, etc