Jim Cramer says Intel stock pullback could open a buying chance

Jim Cramer’s Intel stock view took center stage Wednesday after the chipmaker dropped more than 4.5% and traded below $83, according to CNBC’s Investing Club. For retail investors, the move matters because Intel is tied to several hot parts of the chip market, including server processors, manufacturing and advanced packaging.

CNBC said Intel has been under pressure since reporting earnings last Thursday evening. As shares moved closer to $80, Cramer said he saw room for the club to add more at a lower level than its most recent purchase on Monday.

Could Cramer buy more Intel stock?

According to CNBC’s recap of the Investing Club’s Wednesday Morning Meeting, Cramer said the price gap from the club’s prior purchase created a potential opportunity to buy more Intel. CNBC said Cramer is positive on Intel because demand is growing for the company’s central processing units, manufacturing operations and chip packaging business.

Central processing units, or CPUs, are the main chips that run instructions in computers and servers. Chip packaging is the process of assembling and connecting chips so they can work efficiently inside larger systems, an area that has become more important as artificial intelligence computing needs more complex hardware.

CNBC disclosed that Jim Cramer’s Charitable Trust is long Intel, along with Boeing, Capital One, Microsoft, Starbucks and Meta Platforms. The club says subscribers receive a trade alert before Cramer makes a trade, and that he waits 45 minutes after an alert before buying or selling for the trust. If he has discussed a stock on CNBC TV, the club says he waits 72 hours after issuing the alert before executing the trade.

What was happening in the broader market?

The Intel discussion came on a rough day for stocks. CNBC said equities fell sharply Wednesday as oil prices rose on renewed worries about war involving Iran, with investors also waiting for the Federal Reserve’s interest rate decision at 2 p.m. ET.

The CME FedWatch tool showed roughly 64% odds that the Fed would leave rates unchanged and about 36% odds of a hike, according to CNBC. A rate hike means the Fed raises its benchmark interest rate, a move that can influence borrowing costs for consumers, companies and the government.

Cramer said market moves were being driven more by sentiment than earnings, CNBC reported. He pointed to Capital One and Boeing as club holdings affected by that shift, and said the change in views on Boeing was tied to oil. CNBC also said the club sold the rest of its Procter & Gamble position after a disappointing quarter, following a partial sale Tuesday.

Meta, Microsoft and Starbucks were also on deck

CNBC said Meta Platforms and Microsoft were scheduled to report earnings after Wednesday’s close, with technology stocks already under pressure as investors questioned whether heavy AI spending can turn into revenue. The Nasdaq was on a six-session losing streak Wednesday, according to CNBC.

The club was watching whether Meta and Microsoft would follow Alphabet by raising capital expenditure plans. Capital expenditures, or capex, are funds companies spend on long-term assets such as data centers, equipment and infrastructure. Cramer said investors bullish on those stocks did not want to see more capex because the companies would need to find funding for it, CNBC reported.

Starbucks was also on the club’s after-the-bell earnings calendar. CNBC said the club had taken some profits Friday to protect 2026 gains, while Cramer remained supportive of CEO Brian Niccol’s turnaround efforts. CNBC said the rapid-fire stocks discussed at the end of Wednesday’s video were Vertiv Holdings, Ford and Caterpillar.

This story draws on original reporting from CNBC.