During a recent CNBC Investing Club meeting, Jim Cramer expressed strong confidence in Intel, which has seen its stock price rise from the low $20s in August 2025 to around $121 currently. This surge followed a 10% investment from the U.S. government and a $5 billion investment from Nvidia.
Cramer attributes Intel's potential for further growth to the increasing demand for central processing units (CPUs) driven by advancements in artificial intelligence, particularly in inference and agentic AI. He emphasized that the current tech landscape may lead to a shortage of CPUs, granting chipmakers like Intel significant pricing power and enhancing profit margins.
Additionally, Cramer highlighted Intel's emerging foundry business, which could attract more chip designers seeking U.S.-based manufacturing options as AI spending escalates and competitors like Taiwan Semiconductor Manufacturing Company operate at full capacity. Cramer's insights suggest that investors should focus on Intel's future prospects rather than its past performance