Intel will be replaced by Nvidia in the Dow Jones industrial average after a 25 year run, signaling a shift in the semiconductor industry.

The Dow Jones Industrial Average ( ^DJI 0.59%) is making its second major change in 2024. Earlier this year, Amazon ( AMZN -0.89%) replaced Walgreens Boots Alliance. Now, Nvidia ( NVDA -0.84%) is swapping with Intel, and Sherwin-Williams is replacing chemical giant Dow.

The swap reflects their reversal of fortunes within the tech industry and would have been unthinkable a few years ago.

Intel will be replaced by Nvidia on the blue-chip Dow Jones Industrial Average index after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm.

The historic addition of artificial intelligence (AI) colossus Nvidia may spell trouble for Wall Street's most iconic index.

S&P Dow Jones Indices announced the change late Friday, saying the move would "ensure a more representative exposure to the semiconductors industry." Intel stock is down 54% this year. Nvidia's is up 173%.

The Dow Jones Industrial Average held most of its midday gains in the afternoon session Wednesday as an inflation report showed price gains were in line with estimates. Meanwhile, a company backed by artificial intelligence giant Nvidia took a dive in the stock market today.