Key Points
- CNBC’s Jim Cramer named Intel as his top stock pick, arguing that investors should focus on the company’s future AI opportunities rather than its massive rally over the past year.
- He said growing demand for AI infrastructure and Intel’s expanding foundry business could drive years of additional growth for the chipmaker.
CNBC’s Jim Cramer said Wednesday that Intel still has room to run — even after the semiconductor giant’s stock has more than tripled. “Which stock do you want to buy? I told Club members the answer is my new favorite stock in this market: Intel,” the ” Mad Money ” host said, referring to the CNBC Investing Club’s Monthly Meeting for June, which was held earlier Wednesday. Cramer’s Charitable Trust , the portfolio used by the CNBC Investing Club, initiated a position in Intel on June 3. It has since added to its stake twice. Under CEO Lip-Bu Tan, Intel’s stock has staged a remarkable turnaround. It was in the low $20s a share in August 2025, when the U.S. government announced a 10% stake in the company. Roughly a month later, chip industry rival Nvidia invested $5 billion in Intel. Shares now trade around $121 and are up 228% year to date. Cramer said that, ordinarily, a move of that magnitude would be enough to keep him on the sidelines. But he believes Intel’s prospects are being transformed by the growing demand for artificial intelligence infrastructure. “I don’t want to throw away the discipline of not touching a stock that’s rallied like crazy, but when it comes to tech hardware that’s connected to the data center, I think you may not have a choice,” he said. “You can’t afford to care about where these stocks have been. You should only care about where they’re going. When it comes to Intel, I think the answer is up.” Cramer’s optimism centers on Intel’s role in the AI buildout. He said the rise of inference and agentic AI could dramatically increase demand for central processing units, Intel’s bread-and-butter product. Agentic systems are capable of completing tasks with little to no human intervention. “There’s a revolution going on and this revolution requires as many CPUs as possible,” Cramer said, contending that CPUs may experience a severe shortage that gives chipmakers immense pricing power and boosts profits. Cramer also pointed to Intel’s nascent foundry business , which manufactures chips for third-party customers. With AI spending surging and leading foundry Taiwan Semiconductor Manufacturing Company operating near capacity, Cramer said more chip designers will seek alternative suppliers, particularly those who want U.S.-based manufacturing. Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclaimer Questions for Cramer? Call Cramer: 1-800-743-CNBC Want to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com
