Nike Loses $220 Billion as AI Chipmaker Takes Its Place in S&P 100

Nike's (NKE) market value has plummeted by over $220 billion after the company's stock price dropped from nearly $180 in late 2021 to around $38, a decline of approximately 78%. This significant drop has pushed Nike below the size threshold for the S&P 100 index.

The company's exit from the S&P 100 marks one of the steepest declines among large US consumer companies this cycle. The removal is not an index story but rather a reflection of Nike's business struggles, including flat revenue and declining sales in its direct-to-consumer strategy.

Nike's woes are largely attributed to its over-reliance on its own digital channels, which have slowed, as well as the weakening consumer spending power in Greater China. Additionally, newer performance brands such as Hoka and On have taken share from Nike in certain categories.

The S&P 100 rebalance saw four technology companies take Nike's place: Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk. The latter has seen a significant surge in its market value due to booming AI data center demand.