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Intel's Turnaround: Cramer Sees Grit, Not Gelsinger's Dreams
4 Oct
Summary
- Intel's Q2 revenue increased 25% year-over-year to $16.1 billion.
- Jim Cramer is confident in CEO Lip-Bu Tan's ability to restore Intel.
- CPU demand resurgence is key to Intel's potential comeback.
During a recent appearance on Mad Money, Jim Cramer expressed resolute confidence in Intel Corporation, highlighting its ongoing business transformation. He noted that Intel, alongside Meta, fits the current market moment due to high product demand and new product cycles, avoiding demand destruction concerns.
Cramer praised Intel CEO Lip-Bu Tan for transforming the company into a formidable force, contrasting him with his predecessor. Despite acknowledging AMD's current lead, Cramer believes Tan's disciplined venture capital background provides a clear understanding of achievable goals.
Intel reported powerful second-quarter operational execution, with revenue reaching $16.1 billion, a 25% increase year-over-year, exceeding financial guidance. Non-GAAP diluted earnings per share were $0.42, with a non-GAAP gross margin of 41.8%. Operating cash flow hit $7 billion, underscoring healthy liquidity during its strategic pivot.
While Reuters reported Intel might scale back its Ohio memory chip factory, potentially partnering with SK hynix, Cramer maintains faith in Tan's plan. He acknowledges the balance sheet was impacted by the previous administration but sees the current turnaround as achievable due to the CPU demand resurgence. Cramer views Intel's recent stock drop as a potential buying chance.
