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Paint-maker Sherwin-Williams will also replace chemical company
Dow Inc. among the companies that make up the 30-stock average.
S&P Dow Jones Indices said Friday that the changes that take
effect Nov. 7 “were initiated to ensure a more representative
exposure to the semiconductors industry and the materials sector
respectively.”
It added that because the Dow is price-weighted, “persistently
lower priced stocks have a minimal impact.”
Dow Inc., a major producer of chemicals and plastics and
unrelated to the similarly named company behind the index, has
also been the smallest company on the Dow in terms of market
capitalization.
Intel’s share price has dropped more than 50% so far this year
to $23.20. On Thursday, the California chipmaker reported
third-quarter revenue of $13.3 billion, down 6% from the same
period last year.
Intel CEO Pat Gelsinger said at the time that the company is
“acting with urgency” on a plan to reduce costs and simplify its
portfolio. By contrast, Nvidia's shares have risen more than
173% this year to a price of $135.40.
Unlike Intel, Nvidia designs but doesn't manufacture its own
chips, relying heavily on Taiwan Semiconductor Manufacturing
Company, an Intel rival.
In another index, the Dow Jones Utility Average, Texas-based
energy company Vistra will replace Virginia-based AES Corp.
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