Jim Cramer Credits Intel CEO Lip-Bu Tan for Fixing Foundry Woes
Jim Cramer says Intel's new CEO Lip-Bu Tan has tackled the chip giant's troubled foundry business head-on.
Jim Cramer is putting his stamp of approval on Intel's turnaround story, and the name he's crediting is CEO Lip-Bu Tan. According to Cramer, Tan stepped into one of the toughest jobs in tech and immediately went to work on the foundry problems that had been dragging Intel down for years. That's a bold move in an industry where most executives would rather delay the hard calls.
Intel's foundry ambitions have been a Wall Street headache for a while. The company bet big on becoming a contract chipmaker to compete with TSMC, but execution stumbled and costs ballooned. Investors punished the stock hard. Cramer's take is that Tan — who brings serious semiconductor credibility from his Cadence Design Systems days — is the kind of operator who actually understands the manufacturing complexity involved.
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For traders, this is the type of narrative shift that can move a beaten-down name. Intel has been one of the most shorted, most doubted large-cap tech stocks on the board. A credible CEO fix story, amplified by a high-profile voice like Cramer's, can ignite a short squeeze or at least a sentiment rotation. Watch the options flow on INTC.
The broader question is whether Tan's fixes are structural or cosmetic. Cramer seems convinced it's the real deal, but the market will want to see those improvements show up in margins and customer wins before fully buying in. Keep INTC on your watchlist — the setup is getting interesting.
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