Jim Cramer’s Latest Calls: Top 10 Stocks

3. Intel Corp (NASDAQ:INTC)

Number of Hedge Fund Investors: 68

A caller recently asked Jim Cramer on his program on CNBC whether Intel Corp (NASDAQ:INTC) has the potential to double or triple. Cramer categorically said no to this question and recommended the questioner buy AMD instead.

“I don’t think it will. I think it can go up slowly. I know that Qualcomm was rumored to be a suitor, but it looks like they’ve cooled that. Intel Corp (NASDAQ:INTC) doesn’t have the balance sheet to go up that fast, and it’s just not going to be a rocket ship. I would prefer you to buy AMD instead.”

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 this year.

ClearBridge Large Cap Value Strategy stated the following regarding Intel Corporation (NASDAQ:INTC) in its Q3 2024 investor letter:

“While the market environment clearly was a headwind in the third quarter, several of our large positions also faced challenging conditions, which negatively impacted results. In the information technology (IT) sector, Intel Corporation (NASDAQ:INTC) has come under additional pressure due to continued softness in the company’s core PC and server markets as well as concerns on the company’s longer-term competitive position. While Intel’s turnaround is not happening overnight, we are constructive on the outlook into 2025: the company’s product positioning should be much improved and it should be positioned to gain market share in a cyclical upswing in which it has strong earnings power. A somewhat adverse spending environment due to AI myopia has weighed on shares, but we still think the market is undershipping PCs and general servers following a COVID normalization period that saw demand get pulled ahead and then languish as companies froze IT budgets. The installed base is now getting older, and we expect a strong refresh cycle into next year. The delay is actually beneficial to Intel, whose product positioning will be all the more improved. While our investment case is not predicated on an M&A transaction, and we believe one is unlikely, the expression of interest in the company speaks to the value of the assets, which we think still trade at a meaningful discount to fair value.”