Intel Corporation (NASDAQ:INTC) is one of the stocks on Jim Cramer’s game plan for this week. Cramer highlighted that the stock has been performing quite well after the CEO change, as he remarked:
“After close, Intel reports. This stock’s been flying ever since Lip-Bu Tan came in as CEO. Under his leadership, Intel’s started to reclaim the mantle of America’s best semiconductor manufacturer… Of course, given how competitive that world is, Intel’s actual earnings may not be big enough. After this run, you know what, let’s give this one a rest, okay?”
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Intel Corporation (NASDAQ:INTC) designs and manufactures processors, chips, memory, and related hardware. Additionally, it provides software, optimization solutions, and AI-enabled platforms. Cramer highlighted the company’s comeback during the January 14 episode, as he commented:
“Finally, let’s talk Intel, which has been way too hot… last year’s most surprising comeback story. The chipmaker seemed like it was being eaten alive by NVIDIA and AMD. The former CEO Pat Gelsinger, practically ran it into the ground with his ambitious plans to build semiconductor manufacturing facilities…. A lot of people were worried about this national treasure. But then they brought in Cramer fave Lip-Bu Tan as CEO, and he has managed to wrangle a bailout from the federal government, which took a nearly $9 billion stake… Once Uncle Sam got on board, even NVIDIA made a $5 billion investment in Intel. The stock’s been on fire ever since because once they cleaned up the balance sheet, Intel instantly became a much better story, and the investors had a much better bottom line.
When you look at Intel’s daily chart, you see a textbook uptrend. The stock made a terrific move higher in September. It’s been making a pattern of higher highs and higher lows ever since. The MACD line is now flashing a buy signal. Remember what I told you that when it goes over that line, it’s bullish. The on-balance volume has been steadily marching higher. Nice progression there. The only fly in the ointment for Intel is that the relative strength index, RSI, has reached overbought territory. We don’t want it over that line…. That’s why I say it’s been too much of a rocket ship. But Lang says stocks can stay overbought for weeks before the share price starts coming down, so I think we’re okay here. Right now, he thinks that Intel’s making a run at $55, oh man, and could see it eventually going into 2021 highs in the high 60s. It’s a shocking move. And perhaps only the federal government and Jensen Huang, who did the investing for NVIDIA, really caught the bottom. By the way, Jensen Huang, very good friends with the Lip-Bu Tan.”
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Disclosure: None. This article is originally published at Insider Monkey.
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