Motley Fool Money Dow Loses Chips, Boeing Loses Money
Sep 3, 2024
Asit Sharma, a savvy analyst from Motley Fool, dives into the rough waters facing Intel, Southwest Airlines, and Boeing at the start of 2024. He discusses Intel's potential ousting from the Dow and its struggle against rising competition. Asit also covers Southwest's activist investor strategy and Boeing's disappointing downgrade amid ongoing production issues. Alison Southwick brings her expertise to tackle listener questions about asset allocation, the FIRE movement for early retirement, and the perks of donating appreciated stock.
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Intel's Downfall
- Intel's decline started with AMD's rise and strategic shift to outsourcing chip manufacturing.
- Intel's struggles are rooted in their outdated business model and difficulty adapting to the changing chip production landscape.
Intel's Turnaround Strategy
- Intel needs to streamline its organization and cut costs to regain competitiveness.
- Investors should be patient and consider the long-term potential of Intel's foundry business.
Intel and the Dow
- Intel's declining share price makes it a small component of the Dow, potentially leading to its removal.
- NVIDIA is a likely candidate to replace Intel in the Dow, given its prominence in the chip industry.