Struggling chipmaker Intel is facing the possibility of being removed from the Dow Jones Industrial Average due to its slumping stock, according to a report by Reuters.
Intel’s shares have been more than 55% down year-to-date as the company struggles to improve its dire financial situation and continues to lose market share to competitors due to its inability to adapt changing landscape focused on artificial intelligence.
According to analysts and investors who spoke to Reuters, Intel’s position as Dow Jones’ worst-performing stock and one with the lowest price is bound to get a response from the blue-chip index.
“Intel being removed was likely a long time coming,” Ryan Detrick, chief market strategist at the Carson Group, told Reuters.
The removal from Dow Jones would be a significant hit to Intel’s reputation and likely send its shares even further down. The company has been listed on the index since 2000 and was the second tech company to join after Microsoft.
Intel has been scrambling lately to improve its position, making job cuts and considering a number of moves, including splitting its design and manufacturing business. However, experts say that these moves likely won’t make much difference.
Dow Jones’ latest change came in February when e-commerce giant Amazon replaced troubled pharma chain Walgreens Boots Alliance.