BREAKING: Nvidia is In, Intel is Out - Are You Prepared for November, 8th?!

Well, we’ve all seen this coming, but come November 8th - it’ll be official: Nvidia will be replacing Intel in the Dow after nursing a seat in the most exclusive club for over 25 years. 

(Source: Giphy) 

Now if you’re wondering “why does this even matter?” - First, let me welcome you to the continuous and ever flowing AI party of 2024. Second, this isn't just two chipmakers switching seats. Nvidia’s inclusion in the Dow is like the ultimate “momma, I made it” moment. The Dow Jones, despite being a bit of an old-school boys club, is still one of the most exclusive stock indexes in the world - and while it’s been the Grandpa of the indices, Nvidia is about to give it a rejuvenating makeover with its massive volatility. 

(Source: Business Insider) 

Now with that said, the fact that Intel is getting the boot isn’t exactly shocking. Remember, Intel has been struggling to keep up with the tech landscape for a while - especially when it comes to AI. Obviously, they were the king of the semiconductor world, but in recent years, they’ve been overshadowed by an AI - powered Nvidia that continues to cash checks and snap friggin’ necks with their state-of-the-art chips. 

For instance, while Nvidia has been printing money hand over fist, making its shareholders and employees instant millionaires, Intel has been busy slashing jobs, cutting spending, and putting investors on a diet by suspending payouts. Not to mention, the stock has been bleeding out - down -51%.

Live look at Intel shares (Source: Reddit) 

Nvidia, on the other hand, is living its best life. They’ve been the poster child of the AI revolution, and their stock has skyrocketed a meteoric 900% over the past two years. Meaning, AI is the money train, and Nvidia’s been driving it while Intel’s been stuck on the platform, staring at blinking departure boards. 

For this reason, this move signals that Nvidia isn’t just a player in the AI game — they are the game, baby. Semiconductors are at the heart of AI, and Nvidia has made sure everyone knows they’re the ones selling the picks and shovels in this gold rush. Their stock’s been climbing like crazy, and on Friday alone, it jumped another 3% - overtaking Apple's throne of the world's most valuable company in the process. 

(Source: The Motley Fool) 

Now of course, as we’ve seen this week in Microsoft and Meta earnings, there are some skeptics regardless of how many times a company slings AI in their financial reports. Especially since AI spending hasn’t necessarily reaped the jaw-dropping returns that every shareholder and their mom has been promised and has been sold on. 

(Source: Reuters) 

But, still, the fact that Nvidia’s replacing Intel in the Dow is basically the market’s way of saying, “AI is the future, and Nvidia is leading the charge.” Which is something that we all know. It’s not breaking news, but it’s clear that Nvidia’s got no plans to slow down. They’ve been pumping out AI chips like there’s no tomorrow, and with every new breakthrough in generative AI, they’re cashing in. What’s more, is that Nvidia is even enrolling millions of students into its AI courses, because, you know, why da hell not? More AI skills = more demand for Nvidia’s tech = more dollar signs. 

(Source: WCCF Tech) 

As for Intel though, the question now is: can they actually stage a comeback after this cold shoulder treatment? CEO Pat Gelsinger and Co. just experienced a phenomenal earnings showing this past week, boosting shares north of 8% - (despite the 1.85% stock drop from the replacement news yesterday), but the fact that we’re even asking if Intel can make itself relevant again says it all. You can’t rewrite history, but you can get left behind, and right now, Intel’s looking a lot like Blockbuster in a Netflix world.

In the meantime,  Nvidia’s getting ready to officially join the Dow on November 8, and that means the Dow is about to have a dance with one of Big Tech’s most advanced and volatile players going forward. And while we’ll all wait to see if the AI revolution can continue to gain steam - or falter, in the coming days… it’s clear that Nvidia will be driving the friggin ‘bus. One way or another.

So yeah, in the end, place your bets accordingly friends, and as always - stay safe and stay frosty! Until next time… 

PS: Before you jump on the crowded Nvidia bandwagon, you might want to see how we’re already scoring big at Stocks.News. Just this Wednesday, we locked in a 64% winner—in under five hours. Want to know how we did it? Check out the details on becoming a Stocks.News Premium member (don’t miss out on the next exciting trade).

Stocks.News holds positions in Intel, Apple, Microsoft, and Meta as mentioned in the article.