WHO WOULD REPLACE INTEL?

 WHO WOULD REPLACE INTEL?

Nvidia (NASDAQ:NVDA) could replace Intel on the Dow, according to Ryuta Makino, research analyst at Intel investor Gabelli Funds.

With shares up more than 160% this year, Nvidia has become one of the world's most valuable firms thanks to the essential role its chips play in powering generative AI. A stock split in May also increased the odds of its inclusion.

But some investors said Nvidia might be too volatile a stock for the Dow, which usually prefers more stable stocks.

Texas Instruments (NASDAQ:TXN), a nearly century-old chipmaker with significant production capacity within the United States, is another option to replace Intel in the index, said Daniel Morgan, senior portfolio manager at Synovus (NYSE:SNV) Trust, which owns shares in Intel.

Texas Instruments' shares have risen more than 20% this year to $211.09 as of Thursday, which is closer to the Dow constituents' average price of about $209.

In the event of a removal, a stock with a price closer to the average price of the current list might be preferred as a replacement, said David Blitzer, who chaired the S&P Dow Jones Indices' Index Committee for more than two decades until 2019.