Intel (NASDAQ: INTC) has struggled in recent years as NVIDIA and lifelong rival Advanced Microdevices He began to surpass him technically. So far, efforts to catch up have fallen short, driving its stock to multi-year lows.
Its recent performance may make investors forget that it developed the first commercially produced microprocessor and was the world’s largest semiconductor company for most of its history. Since its initial public offering (IPO), the stock has offered massive returns for its investors and a critical lesson for those not around to benefit.
Growth and lessons from Intel
When Intel launched its IPO on October 13, 1971, it introduced shares at a pre-split price of $23.50 per share. Since then, the stock has grown and led to multiple stock splits that would have turned that single $23.50 share into 1,215 split-adjusted shares valued at $0.02 each. Doing some math, if you had purchased a single share on the day of the IPO, that investment would be worth $28,990 today, not including dividends.
Unfortunately for its longtime shareholders, all of Intel’s profits came between 1971 and 2000, the period in which Intel’s 13 stock splits occurred.
Compared to the record closing price of $74.88 per share in August 2000, the IPO stock would have grown to a value of nearly $91,000. The dot-com bust, the move to smartphones, and ultimately the loss of its technical leadership undermined Intel in the 21st century, with many wondering what form it will take in today’s AI-driven technology landscape ( AI).
Admittedly, this history makes the time to sell Intel extremely difficult for even the most experienced investors. Some stocks have recovered from more significant declines, while others subsequently faced bankruptcy and dissolution.
However, the history of Intel stock speaks to the growth potential that comes with leading and leading an industry for decades. Ultimately, even if Intel is not destined to return, investors can learn from its history and look for companies that will lead the industries of the future.
Should you invest $1,000 in Intel right now?
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Will Healy has positions at Advanced Micro Devices and Intel. The Motley Fool has positions and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Intel and recommends the following options: Short November 2024 calls for $24 on Intel. The Motley Fool has a disclosure policy.
If You Bought 1 Share of Intel in Its IPO, Here’s How Many Shares You’d Own Now was originally published by The Motley Fool