The Dow Jones Industrial Average has made some changes: Intel, the chip company, leader in the 80’s and 90’s will leave the index and NVDA will join. The Industrial Average is incrementally less industrial and more tech heavy, above all because it follows the price weighted methodology and Tech companies tend to have higher prices in this part of the cycle. As you can see below, in three years, NVDA has tripled its revenues, and it has gone from half of Intel revenues to doubling them. But there’s one addional data point to consider: Intel Market cap is $100 Bn. NVDA is worth now $3.2Tn, or 32X Intel. NVDA’s founder, Jensen Huang is now worth $120Bn. He could buy Intel and still be a billionaire after the purchase. This shows how fast this market is moving and how fast former leaders can become obsolete.
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