Here's How Much Investing $1,000 In Intel At Dot-Com Bubble Peak Would Be Worth Today

Despite an ongoing pandemic and the U.S. economy barely limping along, the Nasdaq is still trading more than 50% above its March lows. The surge in tech stocks in 2020 has understandably led investors to draw comparisons to the dot-com bubble in 2000.

The Nasdaq ultimately peaked at 5,048.62 on March 10, 2000. Of course, some dot-com bubble stocks have performed much better than others in the 20 years since the bubble burst.

Intel’s Past 20 Years: Without a doubt, semiconductor stock Intel Corporation INTC had major difficulty returning to its dot-com bubble levels.

Intel went public back in 1971, more than two decades before the dot-com bubble started to inflate. Intel’s IPO took place the same year the company produced the world’s first commercially available microprocessor, Intel 4004. Intel IPO investors likely never could have foreseen the rise of the internet, smartphones, cloud computing and many of the other tailwinds that have driven Intel’s business in the past 20 years.

By the late 1980s, Intel had become the largest and most profitable PC industry supplier. Intel reached a peak dot-com era market cap of $509 billion in August 2000.

Dot-Com Bubble Fallout: Intel’s high watermark of the dot-com bubble was $147.50 back in 2000 prior to a two-to-one stock split in July of that year. When the bubble burst, Intel shares tanked, dropping 50.9% in the year following the Nasdaq top compared to a 59.3% overall decline for the index. Unfortunately, when the Nasdaq stabilized, Intel shares continued to struggle.

Intel’s share price hit $12.95 in late 2002 before rebounding to a pre-financial crisis high of $34.60 in late 2003. During the sell-off in 2009, Intel shares dropped as low as $12.06. By late 2014, Intel made it back above $35 for the first time since 2002. In early 2018, Intel pushed through the $50 level for the first time since 2000.

Intel eventually made it as high as $69.29 in early 2000, but it has struggled to gain much ground in the past several years due to manufacturing issues and lost server market share. Twenty years after the bursting of the dot-com bubble, Intel has never made it back to its split-adjusted high of $73.75 back in 2000.

Intel will forever be known as one of the quintessential dot-com bubble stocks given its market cap peaked at more than half a trillion dollars. The good news for Intel investors who bought at the height of the bubble is that the stock’s dividends alone have helped investors turn a slight profit in the past two decades.

In fact, $1,000 invested in Intel stock at the dot-com bubble peak would be worth about $1,306 today, assuming reinvested dividends.

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