TLDR
- Jim Cramer expresses confidence in new Intel CEO Lip-Bu Tan despite warning about the stock’s recent gains
- Truist Securities maintains Hold rating with $21 price target, citing uncertain recovery path
- Intel receives $5.7 billion CHIPS Act disbursement converted to government equity stake
- Company files SEC registration for potential resale of up to 673 million shares and warrant
- Leadership changes continue with Michelle Johnston Holthaus resigning as CEO of Intel Products
Intel’s stock journey continues to capture Wall Street attention as the chipmaker navigates through a complex transformation period. The semiconductor giant currently trades at $24.32 with a market cap of $106.89 billion.
Jim Cramer has thrown his support behind Intel’s new leadership. The CNBC host specifically praised CEO Lip-Bu Tan during a recent show. “I happen to really believe in Lip-Bu Tan. I think he’s absolutely great,” Cramer told viewers.
However, Cramer cautioned against getting carried away with the stock’s momentum. He noted the shares have experienced a “very, very big move” recently. The veteran host warned investors not to “get ahead of ourselves with Intel.”
Cramer previously discussed the government’s involvement in Intel’s operations. He referenced the White House taking a 10% stake in the semiconductor company. The move was described as “unorthodox” but necessary given Intel’s multi-year struggles.
Government Investment Takes Shape
The government support has now materialized through the CHIPS Act. Intel received a $5.7 billion disbursement from the program. This funding has been converted into an equity stake for the U.S. government.
The financial support follows an amended agreement with the U.S. Department of Commerce. This agreement released Intel from previous obligations tied to federal support under the Act. The arrangement reflects Washington’s strategic interest in domestic semiconductor manufacturing.
Intel has also filed a prospectus supplement with the SEC. The registration covers potential resale of shares and a warrant. This includes up to 673,839,150 shares of common stock.
Meanwhile, Truist Securities maintains a more measured outlook on Intel’s prospects. The firm kept its Hold rating and $21.00 price target unchanged. This target sits below the current trading price of $24.32.
Analyst Perspectives on Recovery Path
Truist acknowledged Intel’s progress in turnaround efforts following a virtual investor meeting. The research firm identified four key improvement areas for Intel. These include culture, competitive capabilities, AI strategy, and government engagement.
The analysts expressed being “slightly encouraged” by developments across these categories. However, they emphasized that improvements “are going to take a while.” Success for Intel remains “far from certain” according to Truist.
The firm believes Intel’s “road to recovery remains long & uncertain.” This assessment comes despite the stock’s 22% year-to-date gain. Truist made no changes to its financial estimates for the company.
Leadership changes continue to reshape Intel’s executive team. Michelle Johnston Holthaus resigned from her role as CEO of Intel Products. She will remain in a non-executive capacity until March 2026 to assist with the transition.
Kevork Kechichian joined Intel as executive vice president and general manager of the Data Center Group. He brings over 30 years of industry experience to the role. These moves align with Intel’s strategy to bolster its core business and engineering-focused culture.
Intel’s stock has gained 22% year-to-date according to InvestingPro data. The performance stands out in a challenging environment for semiconductor stocks. The company trades at a market capitalization of $106.89 billion as of the latest data.
