Alphabet will replace Verizon Communications in the Dow Jones Industrial Average starting June 29. The S&P Dow Jones Indices announced the change June 24, marking the index’s first revision since November 2024.

Alphabet’s addition reflects the index committee’s shift toward growth sectors. The company spans advertising, cloud computing, artificial intelligence, hardware, autonomous vehicles, and healthcare technology. Verizon’s traditional telecom exposure no longer carries the weight it once did.

The divisor used to calculate the index will adjust June 29 before market opening. New divisor files will post June 26, the last trading day before the change takes effect.

Alphabet’s inclusion marks a symbolic moment for Big Tech. The company’s stock has surged roughly 38% year-to-date, driven largely by AI infrastructure and search dominance. Investors have rotated capital from traditional telecoms into growth plays.

Verizon, meanwhile, faces slower growth rates and capital intensity typical of legacy telecom. The company’s dividend appeal hasn’t offset concerns about 5G saturation and competition.

The Dow remains weighted toward large-cap stability over pure growth. Yet this change signals the index’s reluctant acknowledgment that tech now defines the economy.