During the August 24 Mad Money episode, a caller noted that they bought Intel Corporation (NASDAQ:INTC) at a cost basis of $93 per share and asked whether to pyramid down into the position now that the stock has dropped. Jim Cramer responded:
Okay, I’ve been wrong on the price of Intel when I started to buy it. I did not include the idea that the government’s position, which is able to be sold shortly, would really impact the stock. The quarter was fabulous and it’s just been straight down. At first, I thought it was Leopold’s, we bought some, the unwinding of that Situational Awareness fund and then I thought it was maybe a general sell-off in tech. But what I realized is that there’s a big government position and people just hate this kind of company. They’re ringing the register even as I think that CPUs are the secret and hope for robots. So anyway, that’s where I am. I’ve been wrong. It hurts.
Bull Thesis and Financial Performance
Intel Corporation’s (NASDAQ:INTC) quarterly results point to strong operational performance of the company as it posted total revenue of $16.13 billion, surpassing consensus estimates by nearly $1.7 billion and marking a 25% year-over-year increase. Non-GAAP diluted earnings per share reached $0.42, nearly double the market expectations. Growth was heavily driven by the data center and AI division, which surged 59% year-over-year along with a 13% gain in the client computing group. Furthermore, the management noted that production on advanced nodes like Intel 18A is running ahead of internal schedules, setting the stage for domestic physical AI and robotics.
Additionally, recent hardware pricing trends highlight strong demand for Intel Corporation’s (NASDAQ:INTC) specialized ecosystem. According to observations from Wedbush Securities analyst Matt Bryson, retail and list prices for the company’s Arc Pro B70 workstation graphics cards have climbed significantly across global markets over a single month, surging by up to 30% in the United States, 26% in Germany, and as much as 46% to 48% in South Korea. The B70 shows successful memory cost pass-through and expanding hardware monetization.
Bear Thesis and Structural Overhangs
The bear case focuses on heavy capital expenditure requirements, execution risks within the foundry transformation, and severe structural supply pressures. The caution stems from legacy manufacturing models, with the impending release of government-backed equity stakes into the open market creating a massive supply overhang and constant investor anxiety. As Cramer noted, market participants are quick to ring the register at the slightest sign of weakness, punishing the stock as broad macroeconomic rotations turn hostile toward capital-intensive technology plays.
Smart Money Sentiment and Short Interest
According to Insider Monkey’s database tracking over 1,000 elite hedge funds, institutional sentiment toward Intel Corporation (NASDAQ:INTC) saw a notable uptick in the second quarter of 2026. A total of 138 hedge funds held positions in the company at the end of Q2 2026, up from 112 funds in the prior quarter. Meanwhile, short interest remains relatively subdued, with the short percentage of float standing at 2.48%.
Intel Corporation (NASDAQ:INTC) remains a foundational pillar in domestic semiconductor manufacturing. While looming government liquidity overhangs and broader tech sector rotation have introduced steep near-term volatility, robust quarterly performance, expanding memory pricing power, steady institutional accumulation, and minimal short interest provide a solid foundation for the underlying turnaround story. For long-term investors evaluating temporary drawdowns, Cramer’s comment highlights the gap between immediate market sentiment and the longer-term architectural reality of the business.
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