Cramer Sees Further Upside for Intel After 236% Rally, CPU Shortage Looms
INTC•Jim Cramer named Intel his new favorite stock despite a 236% year-to-date rally, citing surging AI-driven CPU demand and accelerating data center buildout. He warned of a looming CPU shortage that could boost pricing power and profits as Intel’s emerging foundry business gains momentum.
1. Cramer Names Intel Top Pick After 236% Rally
Jim Cramer called Intel his new favorite stock despite a 236% year-to-date rally, praising its role in the AI infrastructure boom. Under CEO Lip-Bu Tan, the company has regained momentum, reversing a slide from low $20s last summer to a triple-digit valuation.
2. AI-Driven CPU Demand Spurs Potential Shortage
Cramer highlighted rapid growth in inference and agentic AI workloads, forecasting a severe CPU shortage that could grant Intel pricing power and enhance margins as hyperscale data centers expand capacity.
3. Foundry Segment Poised for Growth
Intel’s emerging foundry unit stands to benefit as global chip demand drives customers toward alternative suppliers, underpinned by a $5 billion investment from a major industry peer last autumn.
