Nvidia replaced Intel in the Dow Jones Industrial Average (DJIA) on November 8, 2024. This marked a pivotal shift in the semiconductor industry toward AI-driven innovation. The change was announced a week earlier, on November 1, by S&P Dow Jones Indices. The goal was to make the index better reflect today’s economy, especially the rise of artificial intelligence (AI).
Thus, understanding Nvidia’s role in the Dow offers investors a window into the future of technology and business.
Nvidia’s Dow Entry: Pioneering AI Innovation
Nvidia’s record growth coupled with its 10-for-1 stock split announced in May 2024 enabled its addition to the DJIA. The same year, its stock soared by more than 170%, pushing its market value to $3.3 trillion. That made it the second most valuable publicly traded company, behind only Apple. Nvidia leads in AI chip technology, especially with its powerful GPUs like the H100. Leading tech firms like Microsoft and Google, heavily use these GPUs for their AI data centers.
Meanwhile, Intel has struggled. In 2024, it reported a $16.6 billion quarterly loss and saw its stock drop by over 50%. The company has fallen behind in the AI race, laid off 15,000 workers, and lost market share. These issues led to its removal from the DJIA after 25 years.
Intel’s exit and Nvidia’s entry reflect a bigger industry trend. The focus has shifted from traditional chipmaking, once dominated by Intel, to AI-focused innovation, where Nvidia is now leading. The change also shows the DJIA’s aim to highlight companies that are shaping the future of the economy.
Nvidia’s Surge Pre-Dow Inclusion
On November 7, 2024, the day before DJIA inclusion, Nvidia’s stock hit an all-time high close of $148.88, reflecting strong investor confidence. The H100 GPU dominated AI training with a 90% share of the AI chip market, cementing its pre-DJIA momentum.
A McKinsey report, cited in Disruption Banking’s December 6, 2023, article, projects AI will boost U.S. GDP by 21% by 2030. Market analysts noted that anticipation of joining the DJIA also supported the stock’s strong performance, driven by Nvidia’s explosive growth and large profit margins.
Post-Dow Volatility and Financial Strength
Since its Dow inclusion, Nvidia’s stock has experienced some volatility. It closed at $147.63 on the inclusion day, with a high of $149.77 that day, reflecting a recovery from earlier volatility. Despite this, the company’s financial performance remained very strong. From January 1, 2025, with a year open of $134.3, to today’s price of $135.13, the stock has moved less than $1 in value (TradingView).
Full year fiscal 2024 revenue soared 114% to $130.5 billion, with fourth-quarter revenue of $39.3 billion, up 78% year-over-year. This growth was driven by serious demand for GPUs in data centers and innovations like the RTX Blackwell GPUs.
However, Nvidia’s stock was affected by global market trends and challenges this year such as competition, shifting regulations, and Trump’s recent tariff wars. A key event was Super Micro Computer’s (Nvidia’s key server partner for AI hardware) earnings miss reported on May 6, 2025, with preliminary results announced on April 29, 2025.
A mid-March Disruption Banking piece highlighted Nvidia’s key role in tech sector optimism, with its stock at $117 during GTC 2025, up 2.6% that week. These factors reflect a complex market environment where Nvidia’s growth opportunities are tempered by volatility.
How Nvidia Maintains Its AI Leadership
Innovation drives Nvidia’s leadership in AI computing. In 2024, it launched the RTX Blackwell GPU family, including the RTX 2090 with 92 billion transistors (announced this year in January), offering twice the performance of previous generations. Project Digits, a cloud computing platform for AI models with up to 200 billion parameters, exemplifies Nvidia’s forward-looking tech.
The company also collaborates widely: Toyota uses Nvidia’s Drive AGX Orin supercomputer for automated driving, Oracle integrates over 160 AI tools powered by Nvidia, and at COMPUTEX 2025 (a major tech exhibition focused on AI and computing, held May 20-23, 2025, in Taipei, Taiwan), Nvidia announced a joint AI supercomputer venture with Foxconn and the Taiwan government. These advancements not only boost Nvidia’s market position but also drive broader market optimism.
Challenges Facing Nvidia’s Growth
Nvidia faces governance and market challenges. The lack of clear regulation in AI is a major concern, especially regarding AI chip export controls. The Trump administration has proposed tightening Biden-era export rules, which currently limit AI chip sales to about 150 countries without special licenses.
While semiconductors are a “wise exemption” from some tariffs, which aids Nvidia — according to Brad Gerstner, Altimeter Capital CEO — export restrictions to China, announced on April 2025, led to a $5.5 billion write-down on H20 chip inventory, with an expected $8 billion impact in Q2 2026. Nvidia CEO Jensen Huang noted tariffs’ short-term impact would be minimal, with plans for U.S. manufacturing.
Microsoft and other firms, such as AMD, are developing in-house AI chips, potentially reducing reliance on Nvidia’s GPUs. However, Nvidia’s dominance in high-performance AI training gives it a competitive edge. A July 2024 Disruption Banking report highlighted criticisms from investors like Terry Smith and Sean Peche, warning about overvaluation and customer competition. Nvidia is exploring U.S.-based manufacturing and diversifying supply chains to counter export restrictions and tariffs.
The Super Micro earnings miss heightened worries over AI demand, contributing to stock price volatility. These factors create a complex environment for Nvidia to navigate post-DJIA inclusion.
Nvidia’s Growing AI Influence
Nvidia’s future appears promising, driven by continuous innovation and expanding AI adoption. The company is doubling down on agentic AI, enabling more autonomous and intelligent systems, which could unlock multi-trillion-dollar markets. Intentional partnerships, such as the initiative with Saudi Arabia to develop the kingdom as a global AI hub, reflect Nvidia’s expanding global influence.
Nvidia reported Q1 2025 earnings last week, May 28, with revenue of $44.1 billion (up 69% year-over-year), beating estimates of $43.3 billion, but adjusted EPS of $0.81 missed $0.93 due to the H20 write-down. This confirms strong growth but highlights regulatory challenges. These challenges and potential market slowdowns require careful management.
Why Nvidia’s Dow Role Matters for Investors
Nvidia’s inclusion in the DJIA highlights its transformative impact on technology and the global economy. Its strong financials, next-gen pioneering innovations, and strategic partnerships position it to lead the AI revolution. However, regulatory and competitive challenges introduce uncertainty.
Nvidia’s ability to adapt and innovate will be crucial to maintaining its momentum and influence in the DJIA and beyond. Its stock performance before and after joining the index illustrates both the vast growth opportunities ahead and the market volatility that comes with being a tech leader.
Author: Richardson Chinonyerem
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
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Is NVIDIA Leading a Market Rebound? | Disruption Banking
