Intel Corporation (NASDAQ:INTC) was among the stocks on Jim Cramer’s radar on Mad Money, as he advised investors to care about where a stock is going, not where it has been. Cramer called it his “new favorite stock in this market,” as he commented:
Many of the Fed officials want to raise rates because, from their perspective, the economy’s running too hot… And that news, which came out at 2:00 PM, immediately caused the market to roll over, which is when you want to pounce, and which stocks do you want to buy? Okay, I told club members that the answer is my new favorite stock in this market, Intel. We know the story. We had the CEO Lip-Bu Tan on our show, and he was talking about how we’re going to need a ton of CPUs… CPUs are Intel’s bread and butter. As the demand for agentic AI explodes, it’s all about the ratio…
In fact, Lip-Bu Tan told us it can go to as many as four CPUs for one GPU, four CPUs. That’s incredible. CPUs are Intel’s wheelhouse. It’s going to produce an explosion of business for Intel. The stock still finished up 3.5% today on a really horrible day, but it did pull back a couple of bucks from where it was trading before the Fed statement. Another key part of the Intel story is the chip manufacturing business, which is similar to what Taiwan Semi does… Customers increasingly need alternative sources of advanced chip-making from Taiwan Semi. That’s great for Intel’s foundry business.
Companies are increasingly looking for US-based supply to protect against geopolitical risk, another reason to like Intel. Now, under the previous CEO, Intel spent billions of dollars on foundries, and they were a mess. Under Lip-Bu Tan, who’s a real engineer, the problems have been solved. There are going to be foundries coming online for several years now, and I’m confident that they’ll all end up being solidly profitable. Today, we learned that Intel has started production of an 18A-P chip node foundry, which, if successful, could get some orders from Apple. Elon Musk’s giant Terafab project is another Intel partner. There could be many things occurring. These are all because of Lip-Bu Tan.
Photo by Christian Wiediger on Unsplash
Intel Corporation (NASDAQ:INTC) designs and manufactures processors, chips, memory, and related hardware. Additionally, it provides software, optimization solutions, and AI-enabled platforms.
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