We’re buying more shares of Jim Cramer’s new favorite chip stock
Shortly after the opening bell, we’ll be purchasing 120 shares of Intel at around $124 each. Following Monday’s trading, Jim Cramer’s Charitable Trust will own 900 shares of INTC, increasing its weighting in the portfolio from 2.35% to 2.7%. Intel shares fell nearly 14% with consecutive losses last Wednesday and Thursday as investors took profits in many of this year’s leading chip stocks. The stock appears to be a few percentage points higher in pre-market trading and we are buying some shares to get our position size closer to 3%. INTC 5D mountain Intel 5-day performance Reports that Meta Platforms plans to sell excess AI computing capacity have raised concerns that the AI capex (capex) cycle may be peaking. However, we do not think this is the case. Intel’s decision to raise prices for some consumer and server central processing units (CPUs), confirmed Friday, suggests that demand is stronger than supply and the market will likely remain supply constrained for some time. We also remain optimistic about the long-term potential of the foundry business, which is the logical winner for customers looking for alternatives to Taiwan Semiconductor Manufacturing Corporation (TSMC) for chip manufacturing and packaging. Intel shares are trading around the same price as our previous purchase in mid-June. (Jim Cramer’s Charitable Trust is long INTC, META. See here for a full list of stocks.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
