2024 is simply not the year for Intel, as the company’s shares are down 51% year to date, and now reports indicate that the company has been booted from the Dow Jones Industrial Average index.
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Intel was in the Dow Jones index for 25 years, and now… according to reports NVIDIA is poised to take the company’s place in the index as the GPU giant reaches a market cap of $3 trillion, rivaled only by 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 increasing rise of the GPU giant, driven by the exponential demand for artificial intelligence-powered solutions.
NVIDIA was extremely well positioned to meet the demand for AI hardwarewhile Intel was unable to capitalize on early adoption and has since been behind the eight ball when it comes to quality offerings. Moreover, Intel is suffering from a huge brand hit It was discovered that 13th and 14th generation CPUs had hardware errors. These flaws went undetected for months, and Intel’s communications with customers during the period in which information about the problem was being gathered was choppy at best. This has led to consumer confidence being damaged and share values falling significantly.
Intel responded to the numerous problems by reducing the company’s workforce by 15%, resulting in approx 15,000 employees will be laid off in August 2024. The company cited high costs and low margins on its products as the reason for the workforce reduction.
