There is speculation is growing that Intel, $INTC, will be delisted from the Dow Jones Industrial Average as the microchip company’s stock continues to decline

Intel, one of the first two tech companies to join the Dow Jones Industrial Average during the dot-com boom of the late '90s alongside Microsoft, may lose its spot on the prestigious index due to a sharp decline in its stock price.

Analysts and investors anticipate Intel's removal, citing the company's nearly 60% drop in share value this year, making it the worst performer on the Dow and leaving it with the lowest stock price in the price-weighted index.

On Tuesday, Intel's shares fell by about 7% as part of a broader market selloff, with the Philadelphia SE Semiconductor Index dropping nearly 6% after reports of declining global chip sales in July.

Losing its place in the Dow would further tarnish Intel’s reputation. The company has missed out on the artificial intelligence boom, including passing on an investment in OpenAI, and is facing mounting losses in its contract manufacturing division, which was meant to compete with TSMC.

To finance its turnaround, Intel suspended its dividend and announced layoffs affecting 15% of its workforce during last month’s earnings report. However, some analysts and even a former board member question whether these measures will be enough.

"Intel being removed was likely a long time coming," said Ryan Detrick, chief market strategist at the Carson Group. He added that the latest results could be the final factor leading to its removal from the Dow.

Global semiconductor sales in July fell 11.1% compared to June, coming in below the five- and 10-year averages, largely due to weaker memory chip sales, according to UBS Securities.

"End-market demand is not favorable for Intel, compounded by missteps on their product roadmap," said Kinngai Chan, an analyst at Summit Insights Group.

Over the weekend, Reuters reported that Intel CEO Pat Gelsinger and top executives are expected to present a plan to the company's board later this month to cut unnecessary divisions and overhaul capital expenditures.