CNBC's Jim Cramer named Intel his favorite stock on Wednesday, citing rising demand for CPUs as companies scale artificial intelligence services and infrastructure. Cramer described semiconductors as the "best area of the complex" and stated Intel "will work" in a post on X. The endorsement highlights the potential for Intel's core business to capitalize on the expanding AI landscape.

Agentic AI Could Fuel CPU Growth

Cramer argued on his show, Mad Money, that the market is underappreciating the importance of CPUs in AI systems. He projected that demand could increase significantly as AI deployments scale. "We're going to need a ton of CPUs," Cramer said, referencing Intel CEO Lip-Bu Tan's belief that the ratio of CPUs to GPUs in AI infrastructure could rise substantially.

Cramer cited projections that the industry could shift from a ratio of one CPU for every eight GPUs to as many as four CPUs for every GPU. "CPUs are Intel's bread and butter," Cramer noted, emphasizing the strategic importance of this shift for the chipmaker.

US Manufacturing Opportunity

Intel's foundry business stands to gain as companies invest billions in AI infrastructure and seek additional sources of advanced chip manufacturing capacity. Cramer pointed to growing geopolitical concerns prompting customers to look beyond Taiwan Semiconductor Manufacturing Co Ltd. This diversification creates a significant opening for Intel's expanding foundry operations.

Turnaround Under Lip-Bu Tan

Cramer attributed the resolution of many issues that previously weighed on Intel to the leadership of CEO Lip-Bu Tan. Since taking over in March 2025 when the stock traded around $25, Intel shares have surged about 370%. The stock is up more than 480% over the past year and 228% year to date.

The chipmaker's outlook is supported by several tailwinds, including Nvidia's $5 billion investment, the U.S. government's nearly 10% stake, and Tesla Inc's plans to use Intel's next-generation manufacturing process for chips at Terafab in Austin. Cramer advised investors to focus on where Intel is headed rather than past gains, concluding, "when it comes to Intel, I think the answer is up."

Key Stock Performance Metrics

Intel's shares closed 3.46% higher on Wednesday at $121.10 and rose an additional 2.68% in extended trading. Benzinga Edge Stock Rankings indicate Intel stock has a Momentum score in the 99th percentile with a positive price trend across short, medium, and long-term periods.

Intel Corporation stock moved higher on Wednesday following an announcement that its leading-edge 18A-P process node has officially entered the risk production phase. This milestone maintains the advanced manufacturing timeline the company previously established for its foundry division. The development positions Intel Foundry as a direct competitor to Taiwan Semiconductor in the advanced semiconductor manufacturing market.

The Santa Clara, California-based company stated that the Intel 18A-P node met the schedule initially shared with customers and partners in 2025. This node represents the first performance enhancement within the broader Intel 18A process family. "Our updates and presentations at VLSI signal to Intel Foundry customers and partners that we are fully committed to leading edge process innovation over the long term," said Naga Chandrasekaran, executive vice president and general manager of Intel Foundry.

Performance Metrics

According to data presented by Intel Foundry engineers, the 18A-P node delivers significant efficiency improvements over the standard Intel 18A node. The updated architecture is fully design-rule compatible with the existing platform, allowing clients to reuse existing intellectual property and design flows.

Technical Specifications

Intel disclosed several optimizations at the symposium, including material and design adjustments that yield a 20% to 40% improvement in thermal resistance. The company also introduced Power Boost, a dual-contact, low-resistance transistor variant designed to increase drive current. Additional technical highlights include a 10X reduction in dynamic voltage droop and up to an 11% reduction in routed area via backside power delivery systems.

Market Activity

The stock's upward momentum coincided with a broader market relief rally. Intel shares were up 3.99% at $121.72 during premarket trading on Wednesday.