Intel shares could be removed from Dow Jones after recent declines

The complicated situation that Intel has been going through in recent months may be about to get even more worrying. According to Reuters, analysts believe that if the company’s shares continue their downward trend, it can be completely removed from the Dow Jones index.

The situation is likely to drive away investors and raise new doubts about the manufacturer’s ability to remain relevant in today’s market. It would also be quite significant given that Intel was one of the first tech giants to join the Dow Jones, a move that was followed by Microsoft.

Intel currently has a market valuation of $86 billion, which, while still relatively high, is far from the more than $100 billion it has held for the past 30 years. In 2024 alone, its shares suffered a 60% devaluation, reaching US$ 20.10 this Wednesday (4).

Intel is considering drastic measures to change the situation

The prospect of Intel being delisted from the Dow Jones Industrial Average and continuing to lose market value is likely to prompt some drastic action from its leadership. CEO Pat Gelsinger and the company’s top executives are already preparing a new plan to cut costs and sell off “unnecessary” parts of its operations.

Among the measures that could be taken is the termination of the construction of the factory that the company plans in Madgeburg, which would cost a total of US$ 32 billion. If the company is removed from the famous index, it could end up being replaced by NVIDIA or Texas Instruments.

It is worth noting that Dow Jones does not operate based on a company’s market capitalizationbut rather based on the unit values ​​of its shares. Currently, the one at the top is UnitedHealthGroup, whose unit shares are worth US$ 598, far surpassing names like Apple (US$ 222.77) and Amazon (US$ 176.25).

Source: Tom’s Hardware