NEW: Dow Jones Set to Delist THIS Tech Giant... (Talk About Beating a Dead Horse)

You know, being from Oklahoma, there are a bunch of sayings we say that don’t make a lick of sense. But one that you’ll almost always hear during a conversation is, “Not to beat a dead horse, buuut”. Of course, everyones heard it a time or two, especially in movies, but lately, we are all getting a real life example of this in the corporate world. 

(Source: Giphy) 

If you thought I was going to say Intel, then you’re exactly right. Like I mentioned yesterday, Intel is becoming about as hot of a topic as Nvidia, except unlike Nvidia… Intel is sucking big ones these days. And today, they are flailing like a fish out of water, as their catastrophic -57.25% YTD plunge is creating some repercussions when it comes to their Dow Jones listing. 

(Source: Baystreet) 

You see, back in the glory days of 1999, when Y2K was all the rage, Intel proudly strutted its stuff into the Dow Jones Index alongside Microsoft. Fast forward to today, and the possibility of Intel getting the boot from this illustrious index is like watching Amanda Bynes go from the Amanda Bynes Show to friggin rehab and a destroyed career.

(Source: Imgflip) 

And now with Intel shares closing at a mere  $20.13 in late August, Intel is now the proud owner of the lowest stock price on the Dow Jones price-weighted index. Which is why, not surprisingly, analysts and investors are saying that Intel is likely to be removed from the Dow due to its struggling traction in the chipmaker wars. For instance, Ryan Detrick, chief market strategist at the Carson Group, summed it up perfectly: “Intel being removed was likely a long time coming.”

(Source: Reuters) 

Again, this is not surprising whatsoever as Intel’s reputation has taken more hits than a piñata at a five-year-old’s birthday party. They’ve missed the AI boat that’s turning every tech company into a goldmine these days (OpenAI fallout, anyone?), and their latest CPU woes have caused massive repercussions as consumers are now turning to AMD’s processing units. 

Source: Tom's Hardware) 

As if that weren't enough, Intel's contract manufacturing unit, which was supposed to give Taiwan Semiconductors a run for its money, is bleeding cash faster than a trust fund kid on a Vegas bender. Spoiler alert: they’ve suspended their dividend and initiated layoffs affecting about 15% of their workforce. Because nothing screams “we’re in trouble” quite like handing out pink slips while simultaneously clutching your pearls.

(Source: Reuters) 

This of course has investors on the edge of their seats about the future of Intel. The writing is on the wall folks, Intel is getting beat like a dead horse, especially considering the last time there was a shake-up, Walgreens Boots Alliance got the boot in favor of Amazon.

So clearly, the Dow is not afraid to swap out the old guard for the next shiny new toy. Plus, unlike the S&P 500, which is more forgiving on market cap, the Dow Jones inclusion is all based on stock price. Meaning, even though Intel is still considered a big tech giant (for now), the -60% plunge makes Intel a prime target for the boot as UnitedHealth Group, the Dow's highest-priced stock, glides along at a cool 29 times Intel’s value. 

(Source: Kiplinger) 

So with that said, when one company gets kicked out, another replaces it right? Yes, and right now the two frontrunners to take Intels spot are no other than Nvidia and Texas Instruments. Of course, Nvidia is the AI bandwagon train of the century right now as the stock has soared 160% this year. And while Nvidia did have a minor slip on earnings recently, it was mainly due to the fact their track record is so stellar, expectations were unrealistically high for the company. 

(Source: Giphy) 

Meaning, Nvidia is still cashin’ checks and breakin’ necks from all angles. 

On the other hand though, we have Texas Instruments, aka the steady Eddie of the chipmakers, who not only just received a massive $1.6 billion in funding from the US, but has seen a nice +20% boost this year in stock price. So clearly, both companies are prime targets, but when pitted up together, the only element that would hold Nvidia back from getting the listing is its volatility. See: Nvidia tanking -3% and pulling the Nasdaq down with it. 

(Source: Axios) 

Whereas, Texas Instruments with its solid production capacity in the U.S. and stable stock price, may be the reliable alternative that the Dow craves right now. 

Now obviously, nothing is set in stone with any of this, but when it comes to Intel, the stakes couldn't be higher than they are right now. The company is fighting a rough terrain uphill battle as it not only regains its footing in the current AI/chip landscape, but also investor confidence. And now, with Intel being down -6.65% today on the listing threat, things are not looking good for the company whatsoever.

So when it comes to investors what’s the takeaway here? Well, for you Intel peeps, your lifeboat is taking on heavy water… and it might be time to cashout. Just a personal opinion there. 

On the contrary, keep your eyes on Nvidia (obviously) and Texas Instruments as the news continues to unfold. As we all know, Intels fallout will continue to make headlines for the days to come, and in a zero sum game like the market… when one loses another wins. 

The only key here is to find out who the big winners will be. And in this instance, it’s looking like Nvidia and Texas Instruments are the big opportunities from this point forward. 

However, any kind of explosive opportunity in the making there is about as fun as watching paint dry. Meaning, why stress your investing skills trying to execute the perfect buy on Nvidia or Texas Instruments when the last four of our Stocks.News alerts all exploded to peak moves of +110%, +185%, +110.10%, and +300%... in LESS than 48 hours?! 

Incredible right? Our premium members were absolutely eating last week, and with the market closed for Labor Day yesterday, and volatility coming out with a bang this week, our next alert on Wednesday, September 4th is set to be even more explosive. 

Could it be another +100% or +300% move in the making? There’s only one way to find out. Meaning, if you’re not a premium member, then what the heck are you doing? Hurry and upgrade immediately to make sure you get in on next week's action!

In the meantime… stay safe and stay frosty, friends! Until next time…

Stocks.News holds positions in Intel as mentioned in the article.