Intel's Dow Status Under Threat As Struggling Chipmaker's Shares Plunge

Intel's slumping share price could cost it a spot in the Dow Jones Industrial Average. Reuters reports: Analysts and investors said Intel was likely to be removed from the Dow, pointing to a near 60% decline in the company's shares this year that has made it the worst performer on the index and left it with the lowest stock price on the price-weighted Dow. The chipmaker's shares slid about 7% on Tuesday amid a broader market selloff, with the Philadelphia SE Semiconductor index (.SOX) down nearly 6%, following reports of lower chip sales globally in July. A removal from the index will hurt Intel's already bruised reputation. The company has missed out on the artificial intelligence boom after passing on an OpenAI investment and losses are mounting at the contract manufacturing unit that the chipmaker has been building out in hopes of challenging TSMC. To fund a turnaround, Intel suspended dividend and announced layoffs affecting 15% of its workforce during its earnings report last month. But some analysts and a former board member believe the moves might be too little, too late for the chipmaker.

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