New Delhi

A reshuffle is underway in the oldest Wall Street benchmark stock index - the Dow Jones industrial average. Nvidia, the chipmaker at the centre of the artificial intelligence revolution, is set to join the Dow Index.

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The leader in AI chips will replace Intel on the 128-year Dow Jones index on November 8th. Additionally, Sherwin-Williams will replace Dow in the index. Nvidia's inclusion in the blue-chip index is evidence of the strength of the AI-driven surge that has propelled the chip maker's stock up 900 per cent over the last 24 months.

Nvidia's market value dwarfs Intel's after a two-year surge. Until now, the only significant US market index that did not include Nvidia was Wall Street's oldest - the Dow Jones industrial average.

Scott Colyer, chief executive at Advisors Asset Management, told Bloomberg, "Nvidia is a well-run company and joining the Dow demonstrates just how powerful its rally has been in recent years after it was at the right place at the right time when no one else was."

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The largest contributor to stock market gains and the epitome of the AI frenzy is Nvidia. At $3.32 trillion market value, the chipmaker is around $50 billion behind Apple. With shares up 3.2 per cent in post-market trade, Nvidia is likely to overtake Apple as the most valuable business in the world as early as Monday if the gains hold.

Intel joined the gauge in November 1999 when it was added along with Microsoft. But, Intel has been struggling recently with a turnaround plan. The company has slashed spending in 2024, cut jobs and suspended investor payouts. Shares have lost 54 per cent this year and sank another 2 per cent after the bell on Friday.