Intel Shares Crumble: Is Delisting from Dow Jones on The Horizon?
Introduction
Intel, the Santa Clara-based tech corporation, might face an unceremonious delisting from the Dow Jones Industrial Average owing to a drastic decline in its share prices. This looming crisis adds salt to the wounds for the chipmaker, already grappling with technical issues and significant layoffs.
Intel's Financial Meltdown: An Overview
Intel emerged as one of the first tech companies to enter the prestigious blue-chip stock market index in 1999. However, according to financial analysts and reports by Reuters, the tech titan might get expelled from the Dow Jones owing to a harsh 50 percent plunge in its stock prices since the onset of the year. Delisting could further sully Intel's reputation, which is still recovering from its technical glitches with the Raptor Lake processors, the suspension of its quarterly dividend, and exceeding 16,000 staff layoffs as conveyed in its latest earnings declaration.
Intel Looks for A Way Out
Last week, Intel CEO Pat Gelsinger validated the numerous difficulties that his tech giant is encountering in the course of its restructuring efforts. However, he assured stakeholders of his dedicated focus on the necessary solutions to restore the company's former glory. Reports suggest that Gelsinger and Intel's directors are collaborating with investment bankers to devise a financial exit strategy for the company. This strategy may include measures as severe as spinning off its foundry business or holding some plans to build additional semiconductor fabrication plants.
Possible Future Plans
Possible proposals by Gelsinger for Intel's board may include selling off business segments like the Altera programmable logic (FPGA) division purchased for $16.7 billion in 2015. Some believe that this move may prove fruitful for Intel and that AMD, a long-standing rival, could be a possible buyer as the company aims to augment its FPGA product roster. Other proposed solutions include negotiating for additional CHIPS Act cash from the US government or securing the most defense-related silicon production contracts possible.
