Jim Cramer Says Intel (INTC) Situation is ‘Fraught’

We recently published a list of 10 Jim Cramer Stocks to Watch in 2025. In this article, we are going to take a look at where Intel Corporation (NASDAQ:INTC) stands against other Jim Cramer stocks to watch in 2025.

Jim Cramer in a latest program on CNBC commented on the bearish start of 2025 and said being a bear in the market is “easy” because when the stocks rise no one would remember your outlook but if they fall, you will get the credit for your forethought. Cramer mentioned the reasons why he is bullish on the market in 2025.

First, Cramer believes the departure of FTC Chair Lina Khan would bode well for the market. He called Khan “way over her head” and said she used to oppose “all deals.”

Cramer also said President-elect Donald Trump’s tariff policies are expected to be “negotiable” that would offset their negative impact on companies. He also commented on the expected dynamics in the housing market:

“Housing breaks price we’re already seeing what happens when there’s overbuilding as is case in Florida. Prices come down when mortgage rates go up. What happens? Prices go down. Once prices come down, you know what? Buyers start staying away hoping for still lower prices, and it usually works, causing sellers to panic furiously, cutting prices themselves. They’ll be stuck and can’t move. It’s called the cycle. Although it has been operating normally for the last few years, I think 2025 will be the year the cycle reasserts itself, and the FED will win big on this one.”

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article we picked 10 stocks Jim Cramer was talking about heading into the new year. With each stock we have mentioned the number of hedge fund investors. 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).

Jim Cramer Says Intel (INTC) Situation is ‘Fraught’

A technician soldering components for a semiconductor board.

Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Investors: 68

Jim Cramer in December wrote something bearish about Intel Corporation (NASDAQ:INTC) on his Twitter account. Here is what he said:

“This CVS situation is fraught. So is Intel Corp (NASDAQ:INTC). The balance sheets are very difficult to fathom”

In 2025, Intel Corp (NASDAQ:INTC) is expected to generate $4–$5 billion in operating cash flow against a projected $20–$23 billion in capital expenditures. Intel reported $5.1 billion in operating cash flow and spent $18.1 billion in the first nine months of last year.

Intel bulls are linking their hopes with Intel Corp (NASDAQ:INTC)’s foundry business. But the segment posted weak results in both the second and third quarters, with a third-quarter revenue drop of 8% and an EBIT loss that grew to $5.8 billion. Once seen as a potential competitor to Taiwan Semiconductor Manufacturing (TSM), Intel’s steep third-quarter decline raised serious doubts about its manufacturing competitiveness.

Despite short-term efforts to revive growth, Intel Corp (NASDAQ:INTC) is facing a harsh reality. It lags significantly behind its competitors in developing mobile CPUs and GPUs. Intel’s missed opportunities in the mobile sector and delayed entry into AI GPUs have further eroded its market position, causing it to lose substantial ground to rivals.

Invesco Growth and Income Fund stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter:

“Intel Corporation (NASDAQ:INTC): The chipmaker reported weaker-than-expected quarterly results as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward; the stock fell on the news. We sold the position during the quarter.

The chipmaker’s quarterly earnings report was weaker than anticipated as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward. Given that a potential recovery appears to be further in the future than we originally anticipated, we sold the position.”

Overall, INTC ranks 5th on our list of Jim Cramer stocks to watch in 2025. While we acknowledge the potential of INTC, our conviction lies in the belief that under the radar 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.

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