Intel CEO Change Offers Investor Opportunity To Buy In AMD, Says Jim Cramer

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TBEN’s Jim Cramer has beaten the table on one of his favorite semiconductor companies after stocks plunged on news of a leadership change at one of his main rivals, Intel.

Shares of Advanced Micro Devices fell nearly 4% after Intel announced it would replace its chief executive in a month. Intel shares rose 7% as investors welcomed news that current CEO Bob Swan had stepped down to make way for Pat Gelsinger, a former Intel head of VMware, to take over in February.

“As much as Intel needs a change, what matters here is that you now have the chance to buy Intel’s more agile rival AMD, down more than three dollars, for something that could not even happening: a shift at Intel the next three years, “said the host of” Mad Money. “” Gelsinger has done a good job at VMware, but Intel doesn’t really need an old Intel hand . He needs someone new, young, hungry who can shake up the culture, if not blow it up completely. “

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In AMD, buyers would get a share of a $ 110.4 billion company whose inventory nearly doubled last year. Shares of Intel, a larger player with a market capitalization of $ 233.4 billion, fell more than 16% in 2020 as the company reported a delay in developing new chips and losing a partnership key with Apple.

Before these problems, companies like AMD and Samsung started to take market share from Intel.

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Cramer, who applauded AMD CEO Lisa Su for her management of the graphics chip producer, also reiterated his love for Nvidia, a $ 335 billion semiconductor player.

“I would much rather buy the shares of a company that beats Intel to a paste, AMD,” Cramer said. “Under the incredible leadership of Lisa Su, they’ve gone from being a semiconductor that is also exploited – still second-largest after Intel – to one that makes better chips.”

The comments came after a mixed day of stock trading on Wall Street. The Dow Jones Industrial Average ended the session down 8 points, or about 0.03%, at 31,060.47. The S&P 500 and Nasdaq Composite both extended their gains on Tuesday, up 0.23% to 3,809.84 and 0.43% to 13,128.95, respectively.

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The three averages remain to this day in the red week.

Disclosure: Cramer’s charitable trust owns shares of Advanced Micro Devices and Nvidia.

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