Shortly after the opening bell, we will buy 100 shares of Intel at roughly $97.97. Following the trade, Jim Cramer’s Charitable Trust will own 1,300 shares of INTC, increasing its weight in the portfolio to about 3.20% from 3%. After gaining 10% in Tuesday’s session, Intel shares are down slightly in premarket trading following a strong AMD quarter that failed to exceed a high bar. But with the AI trade on better footing and AMD confirming that central processing unit (CPU) demand is growing well beyond internal expectations, we’re scooping up more Intel shares to further build out the position and lower our average cost basis. While Intel shares have recovered significantly from the levels where we made our lowest buy about a week and a half ago, the stock remains well below the after-hours levels it reached on July 23, when Intel delivered a fantastic earnings report . The stock traded as high as about $113 that evening before giving back all its gains and dropping 7% to $92 the next day during regular trading. As you may recall, we struggled with the reasons behind that nasty reversal. Was it the CFO indicating they may tap the capital markets to fund its significant increase in capital expenditures? Was it the lack of major customer announcements for its third-party foundry business? Was it simply profit-taking after a huge run in the stock this year? As it turned out, the fall in Intel was more likely tied to forced selling from a highly levered, AI-focused hedge fund that took on too much risk and was forced to unwind its popular AI trades when the group sold off in July. The combination of the end of forced sellers with strong capex commentary from the hyperscalers this earnings season as reignited the AI theme, and we think Intel is deserving of trading at least back to that post-earnings $113 level. (Jim Cramer’s Charitable Trust is long INTC. See here for a full list of the stocks.) As a subscriber 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 trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Were adding to our position in a chipmaker as the AI trade regains its footing