Intel Corp.’s 25-year run on the Dow Jones Industrial Average index has finished, as Nvidia Corp. takes its place. This indicates a massive shift in the semiconductor industry toward artificial intelligence.

As Intel saw a decline in its share price, Nvidia improved its chances of joining the index by announcing a 10-for-1 stock split in May. Since the Dow weighs its components by share price rather than market value, Nvidia’s move reduced the price of each share by 90%. This would make it easier for Nvidia to be included in the Dow without having an outsized influence on the index.

A leading AI chipmaker, Nvidia saw its shares go up more than 170% as of October. Nvidia is now one of four of the six companies in the index whose market capitalizations are in the trillions, joining Microsoft Corp., Amazon Inc., and Apple Inc.

Intel’s departure from the index was because it was the worst performer; its stock price dipped 54% this year. Since 2021, Intel’s revenue has declined nearly one-third to $54 billion in 2023. Analysts expect that Intel will report its first annual net loss since 1986 this year. For the first time in 30 years, the company’s market value has dropped below $100 billion.

Intel’s stock price fell more after its earnings release. The company’s board’s audit and finance committee approved a $10 billion cost-reduction plan, which includes job cuts that would affect 16,500 employees. As a result, the chipmaker’s stock price dropped by an additional 2%.

“We have a lot more ahead and we are acting with urgency to deliver on our priorities,” Intel CEO Patrick Gelsinger said during the earnings conference call. “We need to fight for every inch and execute better than ever before, and our teams are embracing this mindset as we build a leaner, more profitable Intel.”