Things are not going well at Intel. The company, which has long competed with NVIDIA and AMD, has fallen from the lead in one of the industry’s most important indices. This follows a slowdown in AI and other areas.
NVIDIA has taken years of leadership from Intel
In a significant development reflecting the shifting balance in the technology world, NVIDIA replaced Intel Corp in the Dow Jones Industrial Index (DJIA). This change took place as part of the index’s quarterly rebalancing.
Considered an important indicator of the overall direction of the market, the DJIA regularly updates its constituents based on market capitalization and other criteria. NVIDIA’s leadership in this area is due to the strong demand for its chips, especially in artificial intelligence.
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Intel’s delisting is indicative of its protracted struggle to regain its leadership in the semiconductor industry. Once one of the most important companies in the Dow Jones, accounting for more than 10 percent of the index at its peak, Intel lost out to rivals like AMD and NVIDIA after manufacturing delays and product failures.
Although the company has recently shown signs of recovery, this change is considered a significant loss for Intel. The company’s latest quarterly balance sheet was also marred by slower-than-expected sales of its AI accelerator chip Gaudi 3. Intel withdrew its $500 million revenue target for the AI chip.
The hardware giant is focusing on contract chip manufacturing with companies like Amazon to regain leadership. It will produce custom server chips for Amazon’s data centers with the Intel 3 process. Then it plans to develop special chips for the cloud on the 18A architecture.
