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

On Friday, S&P Dow Jones Indices announced that AI chipmaker Nvidia will replace Intel in the Dow Jones Industrial Average, marking a seismic shift in the semiconductor industry and ending Intel's 25-year run on the prestigious stock market index.

Nvidia (NVDA) shares rose 1% in Monday morning trading as the AI chipmaker is set to join the Dow Jones Industrial Average, which comprises the 30 leading U.S. stocks. This inclusion marks a significant milestone for Nvidia and reflects its growing influence in the tech and AI sectors.

Chipmaker Nvidia will replace Intel on the Dow Jones Industrial Average on Friday as the recent emergence of artificial intelligence continues driving Nvidia's value higher. S&P Dow Jones made the announcement Friday.

Intel (NASDAQ: INTC) stock popped Friday after it reported ugly third-quarter results but its outlook for the fourth quarter was better than expected. However, the celebration was short-lived, as S&P Global announced after hours that rival Nvidia would replace Intel in the Dow Jones Industrial Average (DJINDICES: ^DJI).