Intel is going through a series of setbacks, and the semiconductor giant just lost its place in a key stock index to Nvidia. This change shows us an upheaval in the technology industry, which could influence the components of tomorrow’s computers.
The Dow Jones Industrial Average is a American stock index reference. This brings together 30 of the largest companies in the United States. He symbolizes economic stability and the success of the companies that are part of it. Being removed from the latter represents a warning signal for any company: it is a marker of loss of influence. IntelAfter 25 ans in this prestigious index, is seen today replaced by Nvidia, a growing player, driven by the development of artificial intelligence (AI).
This change comes as the company struggles to meet the challenges of a changing market. Nvidiahistorically specialized in graphics cards, has conquered the AI technology market and is preparing to launch its own processors for PCs in 2026. Faced with this diversification and rapid growth, Intel sees its stock value fall more than 50% this yearwhile the second reaches a capitalization of almost 3,000 billion dollars.
Nvidia takes Intel’s place in the Dow Jones
The integration of Nvidia into the Dow Jones and the Intel withdrawal mark a new era for the semiconductor industry. Nvidia, whose valuation is approaching historic highs, is benefiting from the growing demand for AI technologies, while the latter, formerly leader processors, is struggling to maintain its market share. The company could even register its first annual loss since 1986with revenues estimated at $54 billion for 2024, compared to much higher results in the past.
To try to straighten the barIntel announced in August 2024 a 15% reduction in its workforceor approximately 15,000 positionsand targets savings of $10 billion by 2025. However, Nvidia is preparing to invest massively in the PC processorswhich could further strengthen its presence in our computers, to the detriment of Intel. For users, this could herald a new era where the latter would be omnipresent in the processor market, a field long dominated by Intel.
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