“Nvidia is replacing rival chipmaker Intel in the Dow Jones Industrial Average, a shakeup to the blue-chip index that reflects the boom in artificial intelligence and a major shift in the semiconductor industry.”
The Dow weights its 30 stocks by share price, not market value. Nvidia only fit after a 10-for-1 split in May cut its share price by 90%. Intel gets dropped the same week its board approved cutting 16,500 jobs. The index buys the winner after a 240% year and a 170% year, which is the opposite of an investing strategy.