It's an end of an era. Nvidia replaces Intel on a key Dow Jones Index, as Team Blue's fortunes plummet

Intel, a chip giant, has been a key indicator of the strength of semiconductor markets for 25 years. It is one of only 30 companies in the Dow Jones Industrial Average. Intel's share value has been affected by a year of nonstop financial losses, and a portfolio that includes late or subpar products. S&P Dow Jones removed Intel from the IA Index in favor of Nvidia, the AI darling.

Intel's current share price is about $23, which is roughly half of what it was one year ago. It has fallen heavily after every financial statement, and the figures are not surprising. Intel's net income has been lower each quarter, even though this year's revenue is slightly higher than 2023.

Intel is on track to lose over $20 billion this year unless a miracle occurs in the final months of the year. This is not good news for investors. S&P Dow Jones explained in its press release that Intel was removed from the IA Index to ensure a representative exposure to the semiconductors and materials sectors.

Intel couldn't have been more disappointed to hear about the deletion. Ars Technica reported on it. It has cut 15% of its staff to save money as financial losses continue to mount. Its new desktop Arrow Lake CPUs, like the Core Ultra 9 2855K, have not been well received by the gaming industry. AMD and Nvidia have also sidelined it, as it generates less revenue in the data centres and AI sector.

Intel has spent a lot of money on improving its chip-making facilities, only to abandon some of these projects and rely almost exclusively on TSMC for its latest processors.

Even though the situation may appear dire for the 56-year old company, it is not over. Intel is still the leading US CPU client market share leader, despite being a major US military contractor.

There is plenty of money coming into. The problem is that there is too much going out. This can be managed by cutting down on overheads and closing down divisions which generate little or no revenue.

If you were hoping to find a good alternative to RDNA 4 and Blackwell in 2025 with Battlemage, you may be disappointed.

Alchemist was not a big success for Intel in terms of revenue or income. There's therefore little chance of additional funding being set aside for gaming graphics cards (AI GPUs, however, are a different story).

AMD has proven that it is possible to recover from a bad situation, even though the market has changed a lot since 16 years ago. It's crucial for consumers that Intel does continue to exist, as competition is key to keeping prices down. But only time will tell how Team Blue will look in the future.