CNBC’s Jim Cramer has identified Intel as his top stock pick, urging investors to pivot their focus from the semiconductor giant’s substantial year-to-date rally to its burgeoning opportunities in the artificial intelligence (AI) landscape. Cramer emphasized that the accelerating demand for AI infrastructure, coupled with Intel’s strategic expansion of its foundry services, could catalyze years of sustained growth for the chipmaker.
“Which stock do you want to buy?” Cramer posed to members of the CNBC Investing Club, revealing Intel as his new favored equity. His conviction stems from the profound technological shifts underway and Intel’s positioning to capitalize on them, rather than solely on its impressive stock performance. The CNBC Investing Club initiated a position in Intel on June 3rd and has since increased its stake, signaling confidence in the company’s future trajectory.
Under the leadership of CEO Lip-Bu Tan, Intel has indeed orchestrated a remarkable turnaround. The company’s stock, which languished in the low $20s as recently as August 2025, has surged dramatically. This resurgence coincided with strategic developments, including a notable U.S. government investment and a significant stake acquired by industry rival Nvidia. The stock now trades around $121, reflecting a staggering 228% increase year-to-date.
While Cramer typically maintains a cautious stance on stocks that have experienced such rapid appreciation, he believes Intel’s narrative is fundamentally shifting due to the escalating demand for AI hardware. “I don’t want to abandon the discipline of not touching a stock that’s rallied like crazy,” he conceded, “but when it comes to tech hardware that’s connected to the data center, I think you may not have a choice.” His core philosophy for this situation is clear: “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 is deeply rooted in Intel’s pivotal role in the AI ecosystem. He foresees a significant surge in demand for Central Processing Units (CPUs) – Intel’s core product – driven by the advancements in inference and agentic AI. Agentic systems, designed to perform tasks with minimal human intervention, will necessitate a substantial increase in processing power. “There’s a revolution going on and this revolution requires as many CPUs as possible,” Cramer asserted, predicting a potential CPU shortage that would grant chip manufacturers considerable pricing power and bolster profitability.
Furthermore, Cramer highlighted the strategic importance of Intel’s nascent foundry business. As AI spending intensifies and leading foundries like Taiwan Semiconductor Manufacturing Company operate at near-full capacity, chip designers are increasingly seeking alternative manufacturing partners. Intel’s commitment to U.S.-based manufacturing presents a compelling proposition for these companies, especially those prioritizing supply chain resilience and geopolitical stability. This diversification not only strengthens Intel’s revenue streams but also positions it as a critical enabler of next-generation computing infrastructure. The integration of advanced manufacturing capabilities with a growing demand for AI-specific silicon creates a powerful synergy that Cramer believes will propel Intel’s long-term value.
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