Jim Cramer on Intel: “I Do Believe That Lip-Bu Can Fix What’s Ailing the Company”

Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer discussed, along with market shortages. Cramer discussed the company’s post-earnings stock price decline, as he remarked:

Last night, Intel reported a decent enough quarter but offered distinctly suboptimal guidance for the current quarter, which it said was totally because of the CPU shortage. Remember, anything that goes into a PC or server is in short supply, thanks to the data center boom. So Intel can’t make enough CPUs to truly profit from the shortage. They planned wrong. They were caught unawares. It happens, but that’s why the stock got obliterated today, down 17%.

They didn’t factor in the storage correctly. There was just too much shortage, just way more than they thought… Intel’s slide was so bad that it dragged down the memory chip makers. Pure guilt by association, but that’s ridiculous. Intel doesn’t have a problem with demand. They said we can’t produce enough supply. The industry’s in great shape. This is just one company with lackluster execution and no more than that. I think Intel’s still a great company. It’s come back under Lip-Bu Tan. I think it’s going to take advantage of the CPU shortage, and I do believe that Lip-Bu can fix what’s ailing the company. It was a very broken company when he came in.

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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Disclosure: None. This article is originally published at Insider Monkey.