Cramer sees Intel opening and backs Nvidia’s AI financing plan

Jim Cramer’s Intel and Nvidia financing comments put a spotlight on two very different ways chip companies are seeking capital for the AI buildout. Cramer speculated that Intel’s enlarged share sale could mean it has an opportunity ahead in chip manufacturing, while he called Nvidia’s planned third-party financing framework a “monumentally positive change.”

The distinction matters for investors: Intel is selling new shares, which increases its capital but dilutes existing holders, while Nvidia is working with outside financial firms to create potential funding pools for customers building AI infrastructure. Neither Cramer’s inference about Intel nor Nvidia’s planned financing arrangements amount to a completed customer deal or a finalized funding commitment.

What did Cramer say about Intel and Nvidia financing?

During CNBC Investing Club’s Aug. 11 Morning Meeting, Cramer said Intel had expanded its planned stock offering to $20 billion from the $15 billion announced the day before. Intel said the shares would be offered at $95 apiece, according to CNBC.

Cramer said he remains confident in Intel’s management and strategy, and he expects the money to support growth in its third-party chip-manufacturing business. He speculated that Intel would be unlikely to raise that much equity without having “something in hand,” offering a possible new manufacturing customer as an example.

That was Cramer’s interpretation, not confirmation that Intel has signed a new customer. CNBC reported that Intel shares fell 4% to just above $97 after the initial $15 billion plan was announced on Aug. 10, then traded flat on Aug. 11.

Issuing stock raises cash by selling additional ownership stakes. It can fund investment or reduce financial pressure, but each existing shareholder owns a smaller percentage of the company afterward.

Nvidia’s plan involves outside capital, not a $500 billion Nvidia cash outlay

Nvidia announced Aug. 10 partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilizing more than $500 billion of third-party capital for AI infrastructure over time. The company said the memorandums of understanding are intended to create independent compute-financing platforms and dedicated pools of capital for Nvidia customers.

In plain terms, the proposed platforms would seek to connect customers that need computing capacity with financing for the infrastructure behind it. Nvidia described compute as an investable asset and said the structure could help customers obtain capacity at scale. Those are Nvidia’s stated goals, and the company said final agreements have yet to be executed.

Cramer’s favorable assessment was more positive than his warning in late July about the risks when suppliers help finance customers’ large projects. At that time, he said a reported Nvidia-related backstop for an OpenAI data-center project reminded him of financing patterns before the dot-com crash, though he also said Nvidia remained a strong company and was not predicting a repeat.

The new initiative relies on third-party financing involving six asset managers, rather than the supplier directly backing a customer’s project. That difference helps explain Cramer’s reaction, but it does not eliminate execution or financing risks while the agreements remain unfinished.

CNBC disclosed that Cramer’s Charitable Trust holds Intel, Nvidia, Goldman Sachs and Micron shares.

This story draws on original reporting from CNBC.