8 Stocks on Jim Cramer’s Radar

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 68

Discussing Intel Corporation (NASDAQ:INTC) during the episode, Cramer said:

“Couple of semiconductor names like Applied Materials, which make semiconductor capital equipment, and even the lowly Intel both also roughly 12% higher thanks to the amazing quarter (of Taiwan Semiconductor)… Even lowly worm Intel managed to become one of the five best-performing stocks… up more than 12% and many other chip plays had huge gains, especially the semiconductor capital equipment names.”

Intel (NASDAQ:INTC) develops and produces computing products such as processors, memory, and AI solutions. Since TSMC released its earnings results on January 16, Intel’s stock is up over 7%. Explaining why Intel and other stocks in the group experienced gains because of TSMC, Cramer said:

“Now, like I said earlier, the pin action from this Taiwan Semi quarter was extensive, but some of the biggest beneficiaries were the semiconductor capital equipment companies that, well, these are huge, huge makers of equipment that Taiwan Semi buys… So why did Taiwan Semi quarter spark such a big rally for the semi capital equipment sector? Simple: In addition to all of its bullish revenue and margin guidance for the first quarter of 2025 and the positive commentary about its long-term revenue growth potential, Taiwan Semi also disclosed its capital equipment budget for full year 2025. It was enormous.

Cramer highlighted that TSMC plans to invest between $38 billion and $42 billion in capital expenditures this year, marking an increase of 28% to 41% from the previous year. This spending forecast surpassed Wall Street’s expectation of $36.4 billion. Cramer pointed out that TSMC’s management emphasized that higher capital spending often signals greater growth potential in the years to come, a statement that Cramer believes shows the company’s strategic foresight. He also noted that this strong outlook for capital equipment investment is one of the reasons why semiconductor capital equipment stocks have been gaining momentum recently.