Intel was first introduced to the index back in 1999 but has suffered considerably in recent times. Its stock price has fallen over 50% year-to-date, bringing Intel’s market cap down to a mere $100 billion. Contrast this with Nvidia, which has seen its stock price almost triple this year alone, pushing its market cap well over $3 trillion.
Intel was once considered a giant in the chip manufacturing sector but saw its dominance crumble in the face of Taiwan Semiconductor Manufacturing Company (TSMC), a company heavily intertwined with Nvidia. Intel is also widely considered to have missed the boat when it comes to Artificial Intelligence. Whatever the reason for the downfall, the fact remains that Intel now has the lowest stock price of the price-weighted Dow index.
There is nothing out of the ordinary about switching up the composition of the Dow, which has existed since 1896 and has always included 30 companies since that time. Some companies have even left the index only to rejoin it decades later, such as Coca-Cola, Chevron and IBM. Others were unceremoniously kicked out of the club after over a century of membership, such as General Electric. That said, the bulk of the changes have occurred in the last thirty years.
The development serves as a reminder that nothing lasts forever, particularly in the world of finance. Intel inside no longer, at least as far as the Dow is concerned.
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