Is Intel (INTC) in Trouble? Jim Cramer Warns of “Existential” Risk

We recently published a list of Jim Cramer’s Thoughts on These 9 Stocks. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against other stocks that Jim Cramer discusses.

Jim Cramer, host of Mad Money, recently pointed out some unexpected trends in the stock market this year, spotlighting a group of companies that have largely flown under the radar. These stocks, often overshadowed by the heavily discussed “Magnificent Seven”, the dominant tech giants, are making significant gains without the fanfare. Cramer called them “quiet winners,” emphasizing that many of these stocks, particularly those outside the tech sector, are not getting the recognition they deserve from Wall Street.

READ ALSO: Jim Cramer Discussed These 12 Stocks Recently and Jim Cramer Highlighted Buying Opportunities in 13 Stocks

Cramer elaborated further on this point, noting that the leading stocks in 2025 have emerged from an unexpected mix of sectors, making this trend all the more interesting. Cramer remarked that it is clear that there is a shift happening in the market, with industries beyond tech making significant strides, yet remaining largely underappreciated by the broader investing community.

“So far this year, we’ve had many very big winners outside of tech, and I bet most of them can keep quietly working their way higher.”

He also pointed out that the insurance industry has experienced a particularly strong few years, noting its impressive pricing power, which has translated into higher premiums. This, in turn, has allowed insurance companies to invest those premiums in the bond market, generating significant returns.

Additionally, Cramer argued that the market often gets the most obvious things wrong, which ends up costing investors dearly. In his usual candid style, Cramer emphasized that while no investment is entirely foolproof, certain stocks show more resilience than others. “The key is to buy them when they’re down because they won’t stay down for long,” he advised.

He continued, acknowledging that some stocks have stumbled recently, but he believes that many of the non-tech winners from this year still have room to grow. His message to investors was clear: focus on these quieter, non-tech stocks, as they have the potential to deliver strong returns even as the tech sector struggles with occasional setbacks.

Our Methodology

For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 6. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Is Intel (INTC) in Trouble? Cramer Warns of "Existential" Risk

A technician soldering components for a semiconductor board.

Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 68

A caller asked if there was any hope left for Intel Corporation (NASDAQ:INTC) and Cramer said:

“You know what? Look, Intel does have a very good CFO, now CEO, one of the two CEOs… I wouldn’t bet against it. I think it is a great institution, but I don’t want to be in the stock.”

Intel (NASDAQ:INTC) develops and produces computing products, such as processors, memory, and artificial intelligence technologies. Cramer’s intent to stay away from the stock is not something new as he highlighted the challenges the company faces as he explained in early January:

“Intel is a national treasure people, it can’t be allowed to fail. Too dire a possibility? I don’t think so. Its balance sheet is a mess, its product line isn’t good enough, I don’t know if it can deliver on many of its promises to [the] government. Sure, nice guy messianic former CEO Pat Gelsinger is gone but so what? Intel needs a plan in 30 days, so the stock will keep coming down even after last year’s staggering 60% decline. Intel’s too big to be bought, too indebted to be finessed… The risk is existential.

Overall, INTC ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of INTC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.