Things are not going well at Intel. The company, which has been in competition with NVIDIA and AMD for a long time, has fallen from the leadership in one of the most important indices of the industry. This follows a slowdown in artificial intelligence and other fields.
NVIDIA takes years-long lead from Intel
In an important development reflecting the changing balances in the technology world, NVIDIA replaced Intel Corp in the Dow Jones Industrial Average (DJIA). This change occurred as part of the quarterly rebalancing of the index.
DJIA, which is considered an important indicator of the general course of the market; It regularly updates its components based on market value and other criteria. NVIDIA’s leadership in this field stems from the strong demand for its chips, especially artificial intelligence.
Intel’s removal from the index is indicative of its long struggle to regain its leadership in the semiconductor industry. Once one of the Dow Jones’ most important companies, accounting for more than 10 percent of the index at its peak, Intel lost out to rivals like AMD and NVIDIA after production 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 last quarter earnings were also marred by slower-than-expected sales of its artificial intelligence accelerator chip, Gaudi 3. Intel withdrew its $500 million revenue target for its artificial intelligence chip.
The hardware giant is focusing on contract chip production with companies like Amazon to regain leadership. It will produce special server chips for Amazon’s data centers with the Intel 3 process. Then, it plans to develop a special chip for the cloud on the 18A architecture.
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