We’re buying more of a tech stock with a bright long-term future
Shortly after the opening bell, we will be buying 280 shares of Intel at roughly $125.38. Following the trade, Jim Cramer’s Charitable Trust will own 780 shares of Intel, increasing its weighting in the portfolio to 2.5% from 1.6%. We’re making a sizeable buy of Intel to get the position up to 2.5% in the portfolio ahead of what we continue to expect to be a strong move higher. Jim will share more details on his long-term outlook on Intel during our Monthly Meeting at noon ET Wednesday. The stock has rallied $13 since we initiated this position two weeks ago, but we think there are more gains ahead because of the growth in data center central processing units (CPU) and the foundry story. We also bought more Intel shares on June 5 at $101.80 apiece. The agentic AI era is happening even faster than we thought a month ago, leading to sizeable shift in the ratio of CPUs to graphics processing units (GPUs) in AI server racks. In the beginning stages of the AI revolution, the ratio used to be one CPU for every eight GPUs. However, the rise of agentic AI has pushed the ratio closer to one CPU for every four GPUs. Agentic systems are capable of completing tasks with little to no human intervention. Many believe the ratio will eventually reach parity, meaning one CPU for every GPU, and we’re now in the camp that the ratio will tilt even more toward CPUs as agentic servers explode in demand. That’s great news for Intel’s CPU business, and with industry supply remaining tight, pricing power should remain strong in the quarters ahead. On foundry, we’re strong believers that Intel is the logical winner of customers looking for alternatives to Taiwan Semiconductor Manufacturing Co. for their chip manufacturing and packaging. TSMC is running near maximum capacity, and customers need other sources to meet their demand. Recent media reports suggest that plenty of big-name customers are testing Intel’s packaging and fabrication services, and we think we’ll see more stories like this in the future. By the way, Intel’s foundry also has a big commitment from Elon Musk’s $119 billion Terafab project in Austin, Texas. Musk said this project, which will make chips for Tesla, SpaceX, and SpaceXAI, will rely on Intel’s future 14A chip node process. Tan previously said he expects 14A will be in volume production in 2029. (Jim Cramer’s Charitable Trust is long INTC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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