Jim Cramer discussed the current state of Intel Corporation (NASDAQ: INTC) on CNBC’s “Squawk on the Street.” He provided his views on the company’s strategic direction and recent business decisions. Cramer expressed his opinion on Intel’s decision to sell a majority stake in Altera, a company it acquired in 2015. He believes that the current leadership under CEO Pat Gelsinger is making the right moves to turn the company around.
“Well, Lip-Bu Tan, who’s the new CEO, whom I totally believe in, an unbelievable venture capitalist, who understands semis, did resign from the board last year, has told me, look, we have to fix it. Don’t get ahead of us, Jim. We have to fix the balance sheet.
And you know what? That’s what he’s doing,” Cramer stated.
Cramer discusses Intel’s new strategy
Cramer also touched upon broader market dynamics, including the administration’s recent tariff exemptions and their potential impact on Southeast Asian competitors such as Samsung. He perceived the move as a strategic pause designed to protect American companies from additional economic strain. Discussing the U.S. dollar, Cramer refuted the prevalent panic over its weakening.
He argued that it provides much-needed relief to American multinationals that have long suffered from a strong dollar’s impact on their market share. Cramer also addressed the heightened rhetoric from Beijing, likening it to Cold War-era paranoia. He questioned whether a diplomatic breakthrough similar to Nixon’s historic visit to China is feasible in the current climate.
Despite the insights into Intel’s issues and broader economic concerns, Cramer remains optimistic about certain stocks in the technology and AI sectors. He believes they may offer higher returns. While acknowledging Intel’s potential, he suggests that some AI stocks hold greater promise for delivering higher returns within a shorter time frame.
