Intel was one of two technology stocks that have long joined the Dow Jones Industrial Average (DJIA), the other being Microsoft. However, after a long period of bad progress, Intel is now being replaced by Nvidia. Nvidia will be included in the Dow Jones Index next week.There was talk last month that Intel was likely to be kicked out of the Dow Jones index as part of the index’s rebalancing. It should be noted that on a quarterly basis, stocks are systematically added to or removed from the market capitalization-weighted index based on a comprehensive criterion.
It is stated that removing Intel from the index will not only cause a loss of reputation for Intel, but may also affect stock prices as it will not be included in exchange-traded funds that aspire to the index.
It was the worst performing company in the index
Intel, once the dominant force in chip manufacturing, has lost its manufacturing edge to rival TSMC in recent years and has failed to capitalize on the productive AI boom after making missteps such as refusing to invest in ChatGPT owner OpenAI. Intel’s shares have fallen 54 percent this year, making it the worst performing company on the index.
Intel’s revenue in 2023 fell by almost a third to $54 billion compared to 2021, when Pat Gelsinger took over as CEO. Analysts expect Intel to post its first annual net loss since 1986 this year. The company’s value fell below $100 billion for the first time in 30 years. Nvidia is the second most valuable company in the world after Apple, with a valuation of $3.32 trillion.
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