Intel (INTC) has spent years trying to convince investors that its turnaround story is real.
For a long time, Wall Street was suspicious. The chipmaker was hampered by manufacturing delays, igniting rivalry and raising concerns that it had fallen forever behind its rivals in the contest to power the future of computing.
But artificial intelligence has shifted the debate throughout the semiconductor business.
Investors have poured billions into companies connected to AI infrastructure, powering big gains in equities from Taiwan Semiconductor Manufacturing (TSM) to Nvidia (NVDA). But one top market commentator says investors may still be missing a key portion of the AI ecosystem.
That belief has resulted in a surprisingly optimistic call on Intel from CNBC’s Jim Cramer.
While much of the market remains focused on graphics processing units (GPUs), Cramer sees another category of chips becoming increasingly important as artificial intelligence adoption accelerates.
And if he’s right, Intel could be positioned to benefit.
“Intel will work,” Cramer wrote on social media. “Best area of the complex.”
Intel needs a different AI story than Nvidia
One of the greatest topics propelling markets recently has been artificial intelligence spending.
Tech titans including Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) are still all in on building out data centers, AI models, and cloud infrastructure.
Related: Intel gets a $170 billion AI reason to matter again
Much of that funding has gone to Nvidia’s industry-leading GPUs, which have become the backbone of modern AI systems.
But Cramer feels investors are missing a vital part of the equation, CNBC reported.
Intel CEO Lip-Bu Tan told CNBC’s “Mad Money” that future AI systems may need far more central processing units, or CPUs, than many experts presently anticipate.
Instead of requiring one CPU for every eight GPUs, Cramer suggested the industry could eventually move toward needing as many as four CPUs for every GPU.
That’s important, since CPUs are still Intel’s bread and butter.
That would be a big boost in demand for the kinds of chips Intel has been building for decades.
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For years, investors have seen Intel as a business that has struggled to keep up with faster-moving rivals. But if AI infrastructure becomes increasingly CPU-intensive, the company could be a beneficiary of a development that many market participants have yet to fully comprehend.
Cramer’s views come at a time when Intel’s broader turnaround efforts seem to be gathering steam.
Shares in Intel have soared since Lip-Bu Tan took over as chief executive in March 2025, as optimism builds that the business may return to competitiveness in chip design and manufacturing.
Cheng Chia Huang / Getty Images
The Intel bull case hinges on one CPU assumption
Cramer believes Intel has opportunities beyond CPUs.
The corporation has plowed significantly into growing its foundry business, which builds semiconductors for other clients. That method could become more essential as governments and companies look for non-offshore options for making semiconductors.
Many tech businesses are diversifying supply chains and reducing dependence on a single manufacturing country due to rising geopolitical tensions.
Intel wants to build on that trend.
Cramer cited many variables that might be positive for the company’s development prospects, including higher spending on AI infrastructure, capital expenditures in domestic manufacturing, and wider demand for advanced semiconductor manufacturing.
While Intel’s stock has already had a remarkable rally, Cramer said investors should focus less on how far the shares have moved and more on where the firm might be headed next.
Intel turnaround timeline
- March 2025: Lip-Bu Tan becomes Intel’s chief executive.
- 2025: Intel accelerates efforts to expand its foundry business.
- 2026: Artificial intelligence infrastructure spending continues climbing across the technology sector.
- June 2026: Jim Cramer says Intel “will work” as demand for CPUs could increase significantly, CNBC notes.
The bottom line for investors is this: Will AI adoption generate enough demand to support Intel’s longer-term recovery?
Cramer definitely thinks the answer is yes.
If GPU demand increases and the industry needs more CPUs, then Intel could be riding one of the most important tech trends this decade.
And for a corporation that has spent years trying to recover the faith of investors, that could be just the stimulus it needs.
Related: Intel executive drops unexpected message on explosive chip demand