Nvidia is set to take Intel’s place in the Dow Jones Industrial Average on November 8, a change that underscores Nvidia’s remarkable growth during the AI surge. With a market capitalization of $3.32 trillion, Nvidia’s addition signifies a transition in the index towards more impactful and pertinent companies.
Price Movement
Nvidia Corporation’s stock increased by 2 percent to $135.37 in its last trading session. In pre-market trading on Wednesday, the indicative price depicts a 3 percent increase to $139.32 per share. Over the past year, the stock has provided a remarkable return of over 230 percent.
What happened
Nvidia Corp, a leading AI chipmaker, is set to join the Dow Jones Industrial Average, replacing longtime component Intel, Bloomberg reports. With Nvidia at the forefront of the AI revolution, it will officially take Intel’s place in the 128-year-old index on November 8, as announced by S&P Dow Jones Indices.
This inclusion underscores the extraordinary AI-fueled rise that has boosted Nvidia’s stock by 900 percent over the past two years. Until now, the Dow Jones was the only major U.S. index missing Nvidia.
According to S&P Dow Jones Indices, this adjustment is intended to more accurately represent the semiconductor and materials sectors. This transition is notable, as Intel has been part of the Dow since 1999.
Recent Developments
At the “SK AI Summit 2024,” NVIDIA CEO Jensen Huang highlighted the collaboration with SK Hynix to enhance AI accelerators and high-bandwidth memory (HBM) chips for greater efficiency and performance.
SK Hynix recently started producing 12-layer HBM3E chips, reinforcing its role as a critical supplier for NVIDIA. Huang noted that this joint work on AI accelerators and custom memory is key for handling data-heavy tasks like image and video processing.
Financials
In its latest financial update, the company reported remarkable net sales of $30,040,000 Million in the quarter ended July 2024, reflecting a 122 percent YoY increase from $13,507,000 Million in the quarter ended June 2023. Moreover, EPS (Earning Per Share) surged 172 percent to 0.68, compared to 0.25 in the same period.
About the Company
Nvidia Corporation, a prominent American multinational technology firm, focuses on creating graphics processing units (GPUs), central processing units (CPUs), and system-on-a-chip (SoC) units for sectors such as gaming, professional visualization, data centers, and automotive.
The company has become a major player in the AI industry, reshaping its business model and product portfolio to meet the rising demand for AI-driven technologies.
Written by – Siddesh S Raskar
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