Jim Cramer Credits Lip-Bu Tan for Turning Intel Foundry Around
Cramer says Intel's new CEO tackled the foundry division's core problems head-on. Here's why traders are paying attention.
Jim Cramer is making noise about Intel again, and this time the story centers on CEO Lip-Bu Tan's early moves to fix what had become a serious drag on the company — its struggling foundry business. Cramer's take is straightforward: Tan identified the real problems fast and got to work, which is exactly what Intel needed after years of execution missteps.
The foundry division has been one of Intel's most watched — and most criticized — units. Competing against TSMC and Samsung for outside chipmaking customers is no small task, and the unit had been burning cash while falling short of expectations. Cramer highlights Tan's hands-on approach as a meaningful shift from prior leadership, suggesting the new CEO isn't just reshuffling the deck but actually diagnosing and treating the underlying issues.
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For traders, the Cramer endorsement matters less than the operational signal it points to. If Tan is genuinely stabilizing the foundry side, that removes one of the biggest overhangs on INTC shares. The stock has been a battleground name for a while, with bulls betting on a turnaround and bears pointing to persistent competitive pressure from AMD, Nvidia, and the Taiwanese giants.
The broader question is whether Tan's fixes are cosmetic or structural. Cramer seems to believe it's the latter, and that kind of confidence from a high-profile voice can shift retail sentiment quickly. Watch for any updated foundry guidance or customer win announcements — those will be the real proof points that either validate or deflate this narrative.
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