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Chipmaker Intel Corporation (NASDAQ:INTC) has had a rough couple of years with the stock underperforming the technology sector and major stock market indexes. The stock has also underperformed since it joined the Dow Jones Industrial Average a quarter-century ago.
What Happened: Intel made history, alongside Microsoft Corporation (NASDAQ:MSFT), back on Nov. 1, 1999, when the two technology stocks were the first Nasdaq-listed stocks to join the Dow Jones Industrial Average.
The two stocks joined the well-known market index alongside Home Depot and AT&T as four stocks that went in, replacing the likes of Goodyear Tire, Sears Holdings, Chevron and Union Carbide.
AT&T has since been booted from the Dow Jones, with the other three companies that joined on that day in 1999 remaining.
While Home Depot and Microsoft stock have posted strong returns since joining the Dow Jones Industrial Average, it has not been the same for Intel.
Intel stock traded at a split-adjusted $21.58 on Nov. 1, 1999. The stock trades at $20.54 today. This means that the stock is down 4.8% since it joined the Dow Jones Industrial Average.
Compare that to the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), which is up 283% over the same time frame.
Read Also: Intel Stock Falls After Weak Q2 Results, New Cost Reduction Plan, 15% Headcount Reduction
Why It's Important: Intel stock is down over 50% year-to-date in 2024 and down 38% over the last year as seen on the Benzinga Pro chart below.
The Dow Jones Industrial Average periodically makes changes to the 30 components that make up the index. The last change was earlier this year with Amazon.com Inc replacing Walgreens Boots Alliance.
Stocks can often rise when they are announced to be added to a major index like the Dow Jones Industrial Average. Sometimes, stocks can trade with minimal returns when added to the index, but in the case of Intel, it has been nearly 25 years.
Some financial experts are calling for NVIDIA Corporation to replace Intel, with a preference for the high-growth chipmaker to be added over the legacy company that has seen growth stalled and an underperforming stock price.
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