Chip manufacturer Intel Corporation INTC has had a rough few years, with the stock lagging behind the technology sector and major stock market indexes. The stock has also underperformed since it was added to the Dow Jones Industrial Average a quarter century ago.

What happened: Intel has made history, alongside Microsoft Corporation MSFTon November 1, 1999, when the two technology stocks became the first Nasdaq-listed stocks to be included in the Dow Jones Industrial Average.

The two shares were included in the well-known market index alongside Home Depot And AT&T than four stocks that were included and stocks such as Goodyear Tires, Sears Holdings, Chevron And Union Carbide.

AT&T has since been removed from the Dow Jones, but the other three companies that joined the Dow Jones on this day in 1999 remained.

While Home Depot and Microsoft stocks have delivered strong returns since being included in the Dow Jones Industrial Average, Intel has not.

On November 1, 1999, Intel stock traded at a split-adjusted $21.58. Today, it trades at $20.54, meaning the stock has fallen 4.8% since it was added to the Dow Jones Industrial Average.

Compare that with the SPDR Dow Jones Industrial Average ETF SLIDEwhich represents an increase of 283% over the same period.

Also read: Intel shares fall after weak Q2 results, new cost-cutting plan, 15% workforce cuts

Why it is important: As shown in the Benzinga Pro chart below, Intel’s stock price is down over 50% year-to-date in 2024 and down 38% in the last year.

The Dow Jones Industrial Average regularly makes changes to the 30 components that make up the index. The most recent change came earlier this year when Amazon.com Inc. replaced Walgreens Boots Alliance.

Stock prices often rise when it is announced that they will be included in a major index, such as the Dow Jones Industrial Average. Sometimes stocks can trade with minimal returns when they are added to the index, but in the case of Intel, this has been the case for nearly 25 years.

Some financial experts are calling for NVIDIA Corporation as a replacement for Intel, with the fast-growing chipmaker being preferred to its predecessor, whose growth has stalled and whose share price is underperforming.

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