CNN
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Intel will lose its place in the Dow Jones Industrial Average after a 25-year run against Nvidia, S&P Dow Jones Indices said Friday, the latest blow to the struggling chipmaker that was among the first two tech companies to be included in the blue list. chip index.

Once the dominant force in chip manufacturing, Intel has ceded its manufacturing lead to rival TSMC in recent years and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT owner OpenAI.

Shares of Intel (INTC) are down 54% this year, making Intel the worst performing index and the lowest share price on the price-weighted Dow Jones.

The stock fell about 1% in extended trading on Friday, while Nvidia (NVDA) rose 1.5%.

Launched in 1968, the Silicon Valley pioneer sold memory chips before moving into processors that helped launch the PC industry.

In the 1990s, “Intel Inside” stickers turned ordinary electronic components into premium products and eventually became ubiquitous on laptops.

Nvidia has become a cornerstone of the global semiconductor industry thanks to the vital role its chips play in powering generative AI technologies, leading to a sevenfold rise in its shares over the past two years.

This year alone, the company’s shares have more than doubled.

Once popular only among gamers hunting for PCs with Nvidia’s graphics processors, the company is now the second most valuable in the world and seen as a barometer for the AI ​​market.

The company’s 10-for-1 stock split in June also helped pave the way for its addition to the index, making the soaring shares more accessible to retail traders.