After markets closed last Friday, the Dow Jones Industrial Average announced it would replace Intel (INTC) with Nvidia (NVDA). Even though investors prefer to buy the Nasdaq (QQQ) and S&P 500 (SPY) indexes, the business news media likes to report the Dow’s performance.
Nvidia joins Sherwin-Williams on the Dow, which replaces the chemicals maker, Dow Inc. (DOW).
Intel joined the DJIA in the late 1990s alongside Microsoft (MSFT). 2024 is a tough year for the chip supplier. The firm stumbled at every opportunity to turn the business around. In the PC market, the 13th and 14th-generation top-end CPUs had serious stability issues. Intel finally released a microcode update last month to address chips that were not already permanently damaged.
Intel has high capital costs ahead as it builds manufacturing plants in the U.S.
In the AI server market, Super Micro Computer (SMCI) will cause many retail investors to lose money. After the S&P 500 included SMCI earlier this year, SMCI stock traded as high as $122.90. It closed at $26.05 last week after its auditors resigned.
SMCI announced an amendment to its loan agreement with Cathay Bank. It extended the due date for delivering its annual results. Until the firm submits its financial statements, SMCI is a high-risk speculation to avoid.
