The DOW eviction has given INTC a 3% drop, back to 10/30pre-earnings price, while boosting NVDA by 1.3%. Will funds eliminating INTC cause further drops?
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If you believe Intel will be "saved", I anticipate an entry in the high-teens coming up. And as the old saying goes, buy on the rumors, sell on the news. There will be an opportunity to make $$$. I just wouldn't buy right now
Not a big deal, not much demand for ETF or mutual funds that track that index. Much bigger deal is declining sales, declining gross margin and large operating losses until and unless 18A works. Even then, x86 value proposition continues to decline as ARM now runs client and server and Intel mnfx cost per wafer are still much much higher then TSMC.
"Delisted" is not a term that applies to index membership. "Delisted" means your stock isn't traded on the exchanges any more.
INTC is being removed from the the index. It's not being "delisted". It will still trade as normal on Nasdaq (and the many ECNs).
There is a very small slice of funds that index to the Dow. So small it's nearly irrelevant to institutional ownership. Those funds will have to sell INTC and buy NVDA. The dollar amounts involved won't move the stock materially one way or the other.
Earnings hit? There were no earnings... this company bleeds red ink and will be lucky to find some d-mb outside private equity firms to invest in the failed swing for the fence (x86 and IFS double down).
Nothing is indexed to the Dow.
It’s more of a reputation hit than anything.
Yes. INTC will be delisted from the DJ on Friday; expect further fall out on Monday of next week.