Immediately after the opening bell, you purchase 280 shares of Intel stock at approximately $125.38. After the transaction, the Jim Cramer Charitable Trust will own 780 shares of Intel stock, increasing its weight in the portfolio from 1.6% to 2.5%. We’re a big buy in Intel for up to a 2.5% position in a portfolio that we expect will continue to see strong upside. Jim will share more details about his long-term outlook for Intel during our monthly meeting on Wednesday at noon ET. The stock has increased $13 since we initiated this position two weeks ago, and we think it could move higher going forward due to data center central processing unit (CPU) growth and foundry talk. We also purchased additional Intel stock on June 5th for $101.80 per share. The agent AI era is moving even faster than we thought a month ago, and the ratio of CPUs to graphics processing units (GPUs) in AI server racks is changing dramatically. In the early stages of the AI revolution, the ratio was 1 CPU for every 8 GPUs. However, with the rise of agent AI, this ratio is approaching 1 CPU for every 4 GPUs. Agent systems can complete tasks with little or no human intervention. Many believe that this ratio will eventually reach parity, one CPU per GPU, but we currently believe that as demand for agent servers explodes, this ratio will tilt even further toward CPUs. This is good news for Intel’s CPU business, and pricing power should remain strong in the coming quarters as industry supply remains tight. When it comes to foundries, we strongly believe that Intel is the logical winner for customers looking for an alternative to Taiwan Semiconductor Manufacturing in chip manufacturing and packaging. TSMC is operating near maximum capacity and customers need other sources to meet demand. Recent media reports suggest that a number of high-profile customers are testing Intel’s packaging and manufacturing services, and we expect to see more stories like this in the future. Incidentally, Intel’s foundry also received a major commitment from Elon Musk’s $119 billion Terafab project in Austin, Texas. Musk said the project, which will make chips for Tesla, SpaceX and SpaceXAI, will depend on Intel’s future 14A chip node process. Mr Tan previously said he expected the 14A to be mass produced in 2029. (The Jim Cramer Charitable Trust is a long INTC. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you can receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
