Intel (NASDAQ: INTC) has been facing challenges and disappointments in the stock market, with investors questioning whether the company is underrated or simply underperforming. Despite positive news, Intel has failed to recover, leading to concerns about the future of the stock.
Earlier this year, Intel received promises of up to $8.5 billion in grants from the US government, which was meant to be a major catalyst for the company. However, since this announcement, Intel’s stock has actually fallen, with CEO Pat Gelsinger’s optimism proving premature. Additionally, the escalating technological-commercial war between the US and China has added further pressure on the company.
Furthermore, delays in Intel’s chip factory projects in Ohio and Israel have raised doubts about the company’s ability to stay competitive in the chip manufacturing industry. The high costs associated with setting up a chip foundry business also pose challenges for Intel, as it may take years to see a return on investment.
Investors are now questioning whether Intel may be at risk of being delisted from the prestigious Dow Jones Industrial Average, which would have significant implications for the company and its shareholders. If Intel were to be removed from the Dow, its shares would also be removed from index funds, impacting its market presence and reputation.
Despite these challenges, Intel is not seen as a total loser but rather an underperformer in the stock market this year. The company’s inability to capitalize on positive catalysts is a warning sign for investors, as Intel has been given a “D” rating and is not currently recommended for investment.
Overall, Intel’s stock performance in 2024 has been lackluster compared to other major indices, raising concerns about the company’s future in the market. Investors are advised to carefully consider the risks associated with investing in Intel before making any decisions moving forward.
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https://investorplace.com/market360/2024/07/is-intel-the-next-dow-dropout-the-alarming-signs-investors-cant-ignore/?utm_source=barchart&utm_medium=allother