Intel was kicked off a Dow Jones index after 25 years and replaced by NVIDIA

2024 simply isn't the year for Intel as the company's stock is down 51% to date, and now reports indicate the company has been booted from the Dow Jones Industrial Average index.

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Intel was on the Dow Jones index for 25 years, and now, according to reports NVIDIA is set to take the company's spot on the index right as the GPU giant reaches a $3 trillion market cap, rivaling only that of Apple. For perspective, Intel currently has a market cap of $99 billion. The removal of Intel and the addition of NVIDIA in its place highlights the mounting rise of the GPU giant propelled by the exponential demand for artificial intelligence-powered solutions.

NVIDIA was extremely well-positioned to supply the demand for AI hardware, while Intel wasn't able to capitalize on the early adoption and has since been behind the eight-ball in terms of quality offerings. Additionally, Intel is suffering from a massive brand hit as its 13th and 14th gen CPUs were discovered to have hardware faults. These faults weren't discovered for many months, and Intel's communication with customers throughout the information-acquiring period about the issue was choppy at best. This has resulted in consumer trust being broken and significant stock value drops.

Intel responded to the myriad of problem by reducing headcount at the company by 15%, resulting in approximately 15,000 workers being let go in August 2024. The company cited high costs and low margins on its products for the reasoning behind the staff reduction.