Intel share price drop could see it delisted from bluechip index

Intel is facing a significant decline in its share price, which has dropped over 50% since the beginning of 2024, raising concerns about its potential delisting from the Dow Jones Industrial Average. This situation compounds existing challenges for the company, including technical issues with its Raptor Lake processors, the suspension of its quarterly dividend, and layoffs affecting more than 16,000 employees. CEO Pat Gelsinger is reportedly exploring various strategies to address these financial difficulties, including potential spin-offs of business units and seeking additional funding through the CHIPS Act. Analysts suggest that selling off divisions, such as the Altera FPGA unit, could be a viable option, with AMD being a possible buyer. The foundry business has also seen a decline in revenue, leading to substantial operating losses. Gelsinger's turnaround plans may be hindered by the need for sufficient revenue to support these initiatives, raising concerns about the company's future viability.

- Intel's share price has fallen over 50% in 2024, risking delisting from the Dow Jones.

- The company is facing multiple challenges, including technical issues and significant layoffs.

- CEO Pat Gelsinger is considering strategic options, including potential business unit sales.

- The foundry business is struggling, contributing to substantial operating losses.

- Analysts suggest that without sufficient revenue, Intel's turnaround efforts may be ineffective.