Financial News Agency, November 2 (Editor Zhao Hao) After the U.S. stock market closed on Friday (November 1), S&P Dow Jones Indices announced the component changes to the Dow Jones Industrial Average: NVIDIA will replace Intel , Sherwin-Williams will replace Dow Chemical (Dow) i

Financial Associated Press News on November 2 (Editor Zhao Hao) After the US stock market closed on Friday (November 1), the S&P Dow Jones Index (sp dow jones Indices) announced the composition changes to the Dow Jones Industrial Average:

Nvidia will replace Intel , Sherwin-Williams (sherwin-williams) will replace Dow Chemical (dow) will be included in the Dow Jones Industrial Average, that is The "Dow", one of the three major U.S. stock indexes, will take effect before the market opens next Friday (November 8). After the announcement of

, the stock prices of Nvidia and Sherwin-Williams both rose by more than 3% after the market closed, Intel fell by nearly 2%, and Dow Chemical fell by more than 0.6%. The

press release explains that this index adjustment is 's attempt to ensure higher representation of the semiconductor industry and materials industry. media analysis said that the inclusion of NVIDIA is a "major reorganization" of this blue-chip index, and reflects the booming development of artificial intelligence and major changes in the semiconductor industry.

As a "shovel seller" of AI computing power, Nvidia's value has developed dramatically in the past two years. Last year, the stock rose by 239%. On this basis, it has climbed by more than 173% this year. At present, Nvidia's market value has reached 3.3 trillion US dollars, ranking second only to Apple among listed companies in the world.

With the addition of Nvidia, four of the six companies in the "Trillion Market Capitalization Club" of the US stock market have been included in the Dow Jones Industrial Average. The only ones that are not among them are Google parent company Alphabet and Meta Platforms, while Amazon has been included in the Dow Jones Industrial Average this year. I just joined in February.

In May of this year, NVIDIA announced that it would split its common stock at a ratio of "1 for 10". After the stock split, the share price per share changed from just over US$1,000 to a level of slightly more than US$100. At that time, some analysts pointed out that this move may be in preparation for being included in the Dow Jones Industrial Average.

Unlike the S&P 500 Index's "Holdings Market Capitalization Weighting," the Dow uses "price weighting," which means that price changes in high-priced stocks have a greater impact on the index level than price changes in low-priced stocks. This mechanism makes it difficult for extremely expensive stocks to be included in the Dow.

Benefiting from other technology companies’ purchases of graphics processors (GPUs) such as h100, NVIDIA’s results announced in August showed that the company’s quarterly revenue exceeded US$30 billion, a year-on-year increase of 122%; net profit 16.599 billion, an increase of 168%.

Last month, Nvidia CEO Huang Renxun said that the external demand for the company’s next-generation artificial intelligence chip Blackwell is “crazy.” “Everyone wants to have the most products, and everyone wants to be the first to receive the goods. ."

At the same time, Intel's stock price has plummeted, falling by more than 53% during the year. As the world's largest chip manufacturer, Intel has been in decline in recent years, and the decline will accelerate in 2024.

Earlier this week, Intel CEO Pat Gelsinger said on an earnings call that the company is undergoing one of the most groundbreaking restructuring processes since its founding in 1968.

Last quarter, Intel announced layoffs, spending cuts and suspended dividends to investors. It is worth mentioning that Intel was included in the Dow Jones Industrial Average in 1999, along with and Microsoft .