We recently published 9 Stocks On Jim Cramer’s Radar . Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer recently discussed.
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Intel Corporation (NASDAQ:INTC)’s shares have gained 20% year-to-date, primarily on the back of a 26% jump in August. The stock has performed well recently as investors become slightly more certain about the firm’s future after the Trump administration’s decision to convert $8.9 billion of the firm’s CHIPS Act grants into equity. Cramer discussed the investment:
“Well, look, again, I think this is one of those things where, they were trying, as David said, they needed to do a fundraiser. And it’s sometimes better to take the government’s money because that therefore helps you try to raise other. . .remember that’s only a drop in the bucket of what Intel needs.
“Right but I think the important thing here is this that it wasn’t like Lip-Bu Tan was coming out and saying, listen we have all the money we need. He did not say that, and the government offered the money that was going to be, they wanted it, they had it. Remember, it wasn’t milestones . . .they met the milestones, if that wasn’t why they didn’t get the money it wasn’t clear they were going to get the money. Suddenly they got the money, in return they had to give equity. Now, if you’re the President of the United States, as soon as you give somebody equity, boom, I mean he wants some of that upside. Think about it like this, he left 400 billion dollars [the market cap accretion in NVDA stock] on the table when he gave NVIDIA the right to sell to China. I think he’s probably saying to himself, darn, why did I leave 400 billion dollars on the table, I should have taken a little.
“Alright, can I just tell you, President believes, correctly, that he wants to do what’s right for the American people. And he feels like, well wait a second, I’m going to give them that break, the American people should benefit. Alright.
“[On Intel posting an 8K filing warning about the impacts of the deal] Well I don’t see them saying we didn’t want it.
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Disclosure: None. This article is originally published at Insider Monkey.
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