The Dow Jones Industrial Average ( ^DJI 0.59%) is making its second major change in 2024. Earlier this year, Amazon ( AMZN -0.89%) replaced Walgreens Boots Alliance. Now, Nvidia ( NVDA -0.84%) is swapping with Intel, and Sherwin-Williams is replacing chemical giant Dow.

Intel will be replaced by Nvidia on the blue-chip Dow Jones Industrial Average index after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm.

The change, starting next Friday, lifts a dominant player in artificial intelligence over its chip-making rival, which has struggled to keep up.

By adding AI darling Nvidia, the Dow Jones Industrial Average will better represent the modern semiconductor industry, S&P Dow Jones Indices said.

Nvidia is replacing Intel on the Dow Jones Industrial Average, ending a 25-year-run for a pioneering semiconductor company that has fallen behind as Nvidia cornered the market for chips that run artificial intelligence systems.

The Dow Jones Industrial Average's shift away from value and income could open the door for other mega-cap growth stocks.

Nvidia Corp., the chipmaker at the heart of the artificial intelligence boom, is joining the oldest of Wall Street’s three main equity benchmarks.

The Dow has become way more tech-focused in recent years with the additions of Salesforce, Amazon, and Nvidia. Sherwin-Williams better represents the materials sector than Dow Inc. In the Dow, companies with higher stock prices have higher weightings.

KEY TAKEAWAYS Nvidia joined the Dow Jones Industrial Average Friday, replacing storied chipmaker Intel as the artificial intelligence darling cements its position as the world’s most valuable company.