shares Intel (INTC -3.49%) They were falling today in response to news that it would be removed hours later on Friday. Dow Jones Industrial Average and was replaced by a rival Nvidia.

This news was expected after Nvidia split its shares in June, but it still marks the end of an era for Intel. Dow For 25 years.

As of 11:16 a.m. ET, Intel shares were down 3.2% on the news.

Image source: Getty Images.

Intel’s decline continues

Intel’s removal from the Dow doesn’t really impact business, but it will cause exchange-traded funds (ETFs) that track the Dow to sell shares when the Dow switches on November 8. This is not as significant as the Dow changing on November 8th. from S&P 500 Since there aren’t many ETFs tracking the Dow, this still leads to more supply and less demand.

Additionally, Intel’s decline in the Dow signals the company’s waning relevance in the chip industry once dominated by Intel. The fact that Nvidia overtook the company in terms of market value in 2020 and is now 30 times more valuable than Intel shows how quickly the fortunes of the two companies are changing.

What’s next for Intel?

Intel reported third-quarter earnings, and despite the weak results, the stock rose as investors generally liked what they saw in the quarter.

Total revenue fell 6% to $13.3 billion, and it reported an adjusted loss of $0.46 per share compared to profit of $0.41 per share. One-time impairment charges contributed to some of the shortfall.

But investors were encouraged by guidance calling for a sequential increase in revenue and a return to adjusted profit in the fourth quarter.

Three months after Intel announced a major restructuring, the stock still has a lot to prove, but shares have fallen enough that a significant rally could be in store if the company can execute its rebuilding plan.