May 18, 2026 · 44 min
Intel bets its comeback on AI and foundry services
Mad Money w/ Jim Cramer 5/18/26
Intel’s turnaround depends on converting renewed CPU demand and manufacturing ambitions into a credible challenge to established AI and semiconductor leaders.
- 1Lip-Bu Tan describes a cultural, financial, and operational reset aimed at rebuilding Intel’s competitiveness.
- 2Intel is targeting edge AI, data centers, advanced packaging, and foundry customers while working to improve manufacturing yields.
- 3Cramer warns that enormous potential IPOs from SpaceX, Anthropic, and OpenAI could add substantial new stock supply.
Don't miss
Lip-Bu Tan explains how Intel plans to turn CPU demand, advanced packaging, and foundry services into the foundation of a decade-long comeback.
The brief
Cramer opens with a market rotation between AI hardware and software stocks, asking how investors should interpret sharply divergent performance across the sector.
The discussion turns cautious on AT&T as spectrum costs and 5G expansion collide with competition from satellite providers including Starlink and Amazon’s Project Kuiper.
Intel CEO Lip-Bu Tan lays out a turnaround built on cultural change, balance-sheet repair, stronger manufacturing, advanced packaging, AI, and foundry services.
Tan says inference, agentic AI, and changing CPU-to-GPU ratios are supporting CPU demand, even as Intel develops the capacity and customer trust to capture it.
Cramer then flags potential mega-IPOs from SpaceX, Anthropic, and OpenAI as a market-supply risk before delivering rapid-fire views on semiconductor, energy, and infrastructure stocks.
What was said on this episode
33 statements · 26 positive · 6 negative · 1 neutral
Small ETF-manager trades can move major stocks without fundamental news.
“many of these stocks will go up or down on what we call nothing, meaning small buys from ETF managers who, with their orders, just jar the whole market”
Listen at 2:39
Investors should buy temporarily declining winners rather than beaten-down losers.
“I want to buy winners on a momentary slide, not losers that may just be resting before the next decline.”
Listen at 4:26
Micron appears compelling after falling 6%, trading below 12 times earnings.
“The fairly similar Micron sells for less than 12 times earnings, and it seems compelling down 6% today.”
Listen at 5:13
Cramer recommends buying Micron incrementally, adding after another 2–3% decline.
“I buy some right here and then wait for another, say, 2% to 3% decline to buy more.”
Listen at 6:33
Cramer recommends avoiding AT&T.
“No, I don't want to be in AT&T.”
Listen at 8:01
Starlink and Amazon’s Project Kuiper will significantly compete with AT&T in rural markets.
“I think Starlink is, and I also think Leo from Amazon, both of those are going to be considerable competitors to the rural part of a company like AT&T.”
Listen at 8:07
Intel has become a $108 stock after a major turnaround.
“it's a $108 stock, one of the greatest turnarounds I've ever seen.”
Listen at 9:35
Lip-Bu Tan joined Intel to save the company and benefit the United States.
“I decided to come in to save the company and also good for the United States.”
Listen at 11:06
Lip-Bu Tan reduced Intel’s management structure from 12 layers to five.
“I used to have 12 layers. of the management team. I bring it down to five layers.”
Listen at 11:37
Nvidia committed $5 billion to support Intel and collaborate on R&D engineering.
“Jensen Huang, and he started doing R&D engineering engagement together. And then he said, by the way, Libu, I'm going to give $5 billion to you and support and help you.”
Listen at 12:50
SoftBank invested $2 billion in Intel’s balance-sheet recovery.
“SoftBank, Masa, old friend of mine, I used to be on the board of SoftBank. And he said, Libo, I'd like to support you. He also put $2 billion in.”
Listen at 13:04
Lip-Bu Tan generated a 3,200% return for Cadence shareholders.
“you gave Cadence shareholders a 3,200% return”
Listen at 13:33
Physical AI will be the next major frontier after agentic AI.
“The next frontier is going to be the physical AI.”
Listen at 18:38
Intel’s new PC product has secured 200 design wins.
“we have 200 design wins”
Listen at 20:57
Intel should partner with successful customers to improve mutual outcomes.
“I always have the belief, work with the winner.”
Listen at 21:56
Intel claims EMIP-T is next-generation advanced-packaging technology and best in class.
“our technology is called EMIP-T. This is the next generation of advanced packaging. And that we have the really the best technology.”
Listen at 23:14
Intel’s 18A manufacturing yield is improving 7–8% per month.
“The industry standard, the best practice is to see 7% or 8% yield improvement per month. And now I'm seeing it.”
Listen at 24:51
Intel expects 14A risk production in 2028 and volume production in 2029, matching TSMC.
“2028, we will have risk production. 2029 will be volume production. It will be the same time as TSMC.”
Listen at 26:48
The United States should maintain domestic semiconductor technology, R&D, and manufacturing.
“it's so critical for the country to have the technology, R&D development, manufacturing in the United States.”
Listen at 27:58
Inference and agentic AI are increasing CPU requirements relative to GPUs.
“CPU actually better. So that becomes 1 to 4. and one-to-one, and maybe some people even talk about four-to-one.”
Listen at 29:20
CPU demand will remain strong for the next several years.
“this demand is not a short term, it's the next couple of years. So that's a great opportunity.”
Listen at 30:24
Tan expects Intel’s leadership team to be assembled by June for a five-to-ten-year transformation.
“by end of June, I will have my team. I can consider my team so that we can work on the next five years, 10 years, how to become a different company.”
Listen at 32:49
A flood of new IPO supply can sharply depress the stock market.
“Nothing crushes a market like a flood of new supply.”
Listen at 34:01
SpaceX may IPO in June, raising $70–80 billion at roughly a $2 trillion valuation.
“the IPO might price as soon as June 11th. and begin trading the next day with a company planning to raise $70 to $80 billion at perhaps a $2 trillion valuation.”
Listen at 34:33
Large liquid new listings can enter the Nasdaq-100 on the seventh trading day.
“if its market cap ranks within the top 40 of the current index and meets certain liquidity requirements, then the stock can join the NASDAQ 100 very quickly.”
Listen at 35:51
SpaceX, Anthropic, and OpenAI will exceed the Nasdaq-100 market-cap threshold.
“SpaceX and Anthropik and OpenAI will easily clear that threshold”
Listen at 36:06
SpaceX’s Nasdaq-100 inclusion would trigger substantial forced buying by index funds.
“there will be a tremendous amount of forced buy from index funds that passively mirror this index.”
Listen at 37:27
Overenthusiastic aftermarket buyers could suffer losses in SpaceX shares.
“I think overenthusiastic early buyers could end up getting burned if they pay up in the aftermarket.”
Listen at 39:41
USAC should hold up better than peers because of its high yield.
“But I think that's just another nice one to have. And it won't go down as much as the others because it's got that good yield.”
Listen at 41:13
TSMC shares are expected to rise.
“I think it's going to go higher.”
Listen at 41:57
Cramer recommends buying Devon Energy.
“Devin's a buy, plain and simple. It's exactly what you should be buying right here”
Listen at 42:13
STMicroelectronics is too expensive at 51 times earnings.
“51 times earnings does not make it for me, even if it's a good company.”
Listen at 42:29
Cramer favorably evaluates Solve Energy as a niche company.
“that's a great niche company, and I salute you for bringing it to our attention.”
Listen at 43:20
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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