Important points
CNBC’s Jim Cramer said Wednesday that Intel still has room to run, even after the semiconductor giant’s stock more than tripled. “What stock do you want to buy? I told club members the answer is Intel, which is my new favorite stock in this market,” the “Mad Money” host said, referring to the CNBC Investment Club’s June monthly meeting held earlier Wednesday. Cramer’s Charitable Trust, a portfolio used by CNBC Investing Club, began investing in Intel on June 3rd. Since then, the company has added to its stake twice. Under CEO Lip Vu Tan, Intel’s stock price has made a remarkable recovery. In August 2025, when the US government announced the acquisition of a 10% stake in the company, the stock price was in the low 20sa dollar range. About a month later, chip industry rival Nvidia invested $5 billion in Intel. The stock is currently trading around $121, up 228% since the beginning of the year. Kramer said normally a move of this size would be enough to keep him on the sidelines. But he believes Intel’s outlook is changing due to growing demand for artificial intelligence infrastructure. “You don’t want to give up the discipline of staying out of stocks that are going up like crazy, but when it comes to high-tech hardware connected to data centers, you may not have a choice,” he said. “You can’t afford to worry about what these stocks are doing. All you have to worry about is what’s going to happen. When it comes to Intel, I think the answer is set in stone.” Cramer’s optimism centers on Intel’s role in building AI. He said the rise of inference and agent AI could dramatically increase demand for central processing units, Intel’s flagship product. Agent systems can complete tasks with little or no human intervention. “There’s a revolution happening, and this revolution requires as many CPUs as possible,” Cramer said, arguing that there could be a severe shortage of CPUs, giving chipmakers enormous pricing power and boosting profits. Cramer also pointed to Intel’s nascent foundry business, which produced chips for third-party customers. With AI spending surging and major foundry Taiwan Semiconductor Manufacturing Co. operating near capacity, more chip designers will look to alternative suppliers, especially those willing to manufacture in U.S. locations, Cramer said. Subscribe to CNBC Investing Club today to follow Jim Cramer’s every move in the markets. Questions about Cramer’s disclaimer? Call Cramer: 1-800-743-CNBC Want a deeper look into Cramer’s world? Punch him! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Have questions, comments, or suggestions about the Mad Money website? madcap@cnbc.com
