Following a recent 10% gain, Intel shares are experiencing a slight decline in premarket trading after AMD's strong quarterly results, which did not surpass high expectations. Cramer's Trust will own 1,300 shares of Intel, raising its portfolio weight from 3% to approximately 3.20%.
Despite a significant recovery from recent lows, Intel's stock remains below its post-earnings peak of about $113 reached on July 23. The previous drop in Intel's stock price was attributed to forced selling by a highly leveraged hedge fund involved in AI trades.
With the AI sector stabilizing and positive capital expenditure signals from major tech firms, Cramer believes Intel's stock could return to its previous highs. The Trust's strategy aims to lower the average cost basis while capitalizing on the renewed strength in the AI trade