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 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 change, starting next Friday, lifts a dominant player in artificial intelligence over its chip-making rival, which has struggled to keep up.

By adding AI darling Nvidia, the Dow Jones Industrial Average will better represent the modern semiconductor industry, S&P Dow Jones Indices said.

The AI chip maker will join the 30-company stock indexm which is seen as a bellwether for U.S. economic fortunes.

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.