Intel’s stock has been struggling, despite positive news earlier this year. The company was promised a substantial grant from the US government, but since then, shares have fallen. CEO Pat Gelsinger’s optimism about future projects has not translated into stock performance. Additionally, Intel has faced delays in setting up chip factories in Ohio and Israel, further adding to its challenges.
The competition in the chip manufacturing industry, coupled with the high costs of establishing a chip foundry business, are major concerns for Intel in 2024. The company’s foundry unit reported significant losses in 2022 and 2023, raising doubts about its future profitability. This has led to questions about whether Intel could be delisted from the Dow Jones Industrial Average, a move that would have significant implications for the company and its investors.
Despite the potential opportunities presented by the CHIPS Act, Intel’s stock has underperformed this year, trailing behind major indices like the Nasdaq and S&P 500. The lackluster performance following positive news is a warning sign for investors. Given these challenges and uncertainties, it is advisable to approach Intel stock with caution and avoid investing in it for the time being.
In summary, Intel’s stock has been facing multiple challenges in 2024, including delays in key projects, intense competition, and financial losses in its foundry business. The company’s failure to capitalize on positive news has raised concerns about its future performance and potential delisting from the Dow. Investors are advised to exercise caution when considering Intel as an investment option, as the company currently carries a “D” rating and is not recommended for investment at this time.
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https://investorplace.com/market360/2024/07/is-intel-the-next-dow-dropout-the-alarming-signs-investors-cant-ignore/