Intel will be replaced by Nvidia in the Dow Jones industrial average after a 25 year run, signaling a shift in the semiconductor industry.

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 swap reflects their reversal of fortunes within the tech industry and would have been unthinkable a few years ago.

Nvidia will replace Intel in the Dow Jones Industrial Average, illustrating a changing of the guard in technology and the downfall of what was once an industry titan.

On Friday, S&P Dow Jones Indices announced that AI chipmaker Nvidia will replace Intel in the Dow Jones Industrial Average, marking a seismic shift in the semiconductor industry and ending Intel's 25-year run on the prestigious stock market index. The change takes effect on November 8.

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

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

The Dow Jones Industrial Average held most of its midday gains in the afternoon session Wednesday as an inflation report showed price gains were in line with estimates. Meanwhile, a company backed by artificial intelligence giant Nvidia took a dive in the stock market today.