Intel Corporation (INTC), a long-standing member of the Dow Jones Industrial Average since 1999, is facing the possibility of being removed from the index due to a significant decline in its share price.Intel's stock has dropped nearly 60% this year, making it the worst performer on the Dow and placing it at risk of being ousted from the price-weighted index. The company's struggles stem from missing the artificial intelligence boom and mounting losses in its contract manufacturing unit.
Despite efforts to turn around by suspending dividends and announcing layoffs, analysts and investors believe these measures may be insufficient to save its Dow status.
The S&P Dow Jones Indices, which manages the index, has declined to comment on Intel's potential removal. The last change to the index occurred in February when Walgreens Boots Alliance was replaced by Amazon.com.
Key Points:
- Intel's shares have dropped nearly 60% this year.
- The company has missed out on the AI boom and faces losses in its manufacturing unit.
- Efforts to recover include suspending dividends and laying off 15% of its workforce.
- Analysts speculate that Intel's removal from the Dow may be imminent.
- The S&P Dow Jones Indices has not commented on any potential changes.