Intel stock praised by Jim Cramer as top pick amid AI boom

Intel (NASDAQ:INTC) has seen its share price tumble more than 25% from its all‑time high after a year‑long rally, prompting analysts to question whether the valuation of roughly 100 times forward earnings is justified. The company’s recent efforts to win new customers, such as Apple’s foundry deal, and its positioning in the artificial‑intelligence infrastructure market are seen as potential growth drivers.

Mad Money host Jim Cramer announced on X that Intel is his “favorite stock,” highlighting the chipmaker’s role as the third‑largest customer of Dutch lithography equipment maker ASML. Cramer linked the endorsement to strong AI‑related spending and Intel’s push into advanced semiconductor manufacturing. Despite the endorsement, Intel’s shares fell 4.4% on the day of the announcement and slipped further in pre‑market trading.