Intel Corporation (NASDAQ:INTC) was among Jim Cramer’s latest stock calls, as he advised investors on how to manage data center-related stock positions. Cramer highlighted the market’s reaction to the company’s stock following the latest quarterly results, as he stated:
I’ve been very bullish on Intel ever since the new CEO, Lip-Bu Tan, came in to turn things around a little over a year ago. But even I didn’t expect this formerly iconic chipmaker to report such an outstanding quarter. Last night it did, though; it did the impossible, actually. It somehow lived up to the sky-high expectations that investors set for the business… It’s normally hard to impress Wall Street when your stock comes in that hot. But Intel’s numbers were so tremendous that they sent its share price up a stunning 24% today to a new all-time high, up 23.6%…
Not only did they blow the doors off the quarter, they issued incredibly strong guidance for the next three months… They delivered their biggest revenue beat in more than 5 years with 7% growth. Their margins expanded dramatically, too… All this comes down to something that I’ve mentioned a lot lately, the next leg of the AI revolution… The company’s proving so rapidly that it’s surprisingly been able to meet the demand that, well, that’s because Lip-Bu Tan is a great manufacturer. The latest server CPUs are seeing the fastest new product ramp in 5 years. That’s incredible.
Frankly, in just over a year since Tan took over, I think there’s been a profound cultural shift in Intel. When you listen to him on the conference call, Intel sounds like a company that is firing on all cylinders. Of course, it’s not just culture. Intel CFO David Zinsner, one of the absolute best in the business, explained that the surging demand for CPUs help with pricing, hence the much better than expected margins… The bottom line: Intel’s back. This story is better than it’s been at any time in the last 25 years, thanks to the rise of the agentic AI, which is why I expect a lot more upside long term. Short-term, though, I’m hoping for a better entry point. Today’s parabolic move says you missed it. But this market could go down in a heartbeat, and then you’re going to get another chance.
Photo by Slejven Djurakovic 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.
While we acknowledge the risk and potential of INTC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years
Disclosure: None. Follow Insider Monkey on Google News.
