For what it’s worth, Tan assured that Intel is “working tirelessly to drive efficiency and more output” from the company’s manufacturing plants. This indicates that Intel’s shareholders shouldn’t worry too much about the supply-demand imbalance in 2026.
In any case, Cramer observed that Intel stock had “been flying ever since Lip-Bu Tan came in as CEO.” With high confidence, Cramer added that, under Tan’s leadership, Intel had “started to reclaim the mantle of America’s best semiconductor manufacturer.”
Those are reasonable observations, so it’s not a terrible idea for investors to hold a few shares of INTC stock this year. On the other hand, there’s no need to be extremely bullish as the stock may still need to ease back further after such a strong start to 2026.
Only time will tell whether Tan really does have “a lot up his sleeve.” If so, then Cramer’s contrarian call could enrich some bullish but prudent Intel stock investors.
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People use many different words to describe Mad Money host Jim Cramer. Could he be characterized as a contrarian, though? The answer is yes as Cramer just made a surprisingly bullish call on shares of chip giant Intel (NASDAQ:INTC | INTC Price Prediction).
Under the leadership of CEO Lip-Bu Tan, Intel seemingly flipped from black sheep to comeback kid in early January. After an impressive showing at CES 2026, buzz started circulating about INTC stock shooting far above $100.
But then, INTC stock tumbled 17% in a single day on January 24 following the company’s disappointing fourth-quarter 2025 financial report. All of sudden, sentiment turned sour — but then, Cramer delivered remarks that could point to a rare bounce-back opportunity for Intel and its loyal shareholders.
An Excuse to Sell
After being up 40% year-to-date for a hot minute, Intel stock was vulnerable to a rapid reversion to the mean. Traders only needed an excuse to take profits, and they evidently cherry-picked from Intel’s quarterly report to find reasons to sell.
At first glance, there’s nothing objectionable in Intel’s report. For the quarter ending in December, the chipmaker recorded revenue of $13.7 billion, beating the analysts’ consensus estimate of $13.4 billion.
Additionally, Intel reported adjusted earnings per share of $0.15, easily beating the consensus estimate of $0.08 per share. So, it doesn’t look like investors should have pulled INTC stock back 17% in a single day unless they needed a reason to take profits.
They found an excuse, apparently, in Intel’s forward guidance. For one thing, Wall Street analysts predicted that Intel would generate $12.6 billion in first-quarter 2026 revenue; in contrast, Intel’s guidance range indicates a midpoint of $12.2 billion.
Furthermore, analysts projected Q1 2026 earnings of zero (i.e., flat) per share while analysts estimated positive earnings of $0.08 per share. The market can be forward-looking when it wants to be, so it appears that Intel stock traders disregarded the actual results and focused on forward projections.
Cramer Warns of Potential “Big Mistake”
Also, during the conference call following the recent earnings release, Intel’s CEO basically admitted that his company had difficulty keeping up with the demand for artificial intelligence (AI) chips. Tan stated, “In the short term, I’m disappointed that we are not able to fully meet the demand in our markets.”
That statement probably contributed to the pullback in INTC stock. Nevertheless, Cramer isn’t about to give up on Tan and Intel in 2026.
“Some think,” Cramer posited after the quarterly earnings report, “that Intel took itself out of the running today after announcing a quarter that was less than expected.” He responded to this critique, however, declaring, “That’s wrong. You have to look out. The demand there is insane.”
Of course, Cramer is referring to the robust demand for Intel’s AI-enabled processors. This argument makes sense in light of Tan’s admission of difficulty in keeping up with that demand.
Cramer’s bullish remarks are even more controversial when we consider that INTC stock was already up 40% year-to-date before the earnings miss. Is it possible that the 17% share-price drawdown was fully justified and there’s more downside coming?
According to Cramer’s commentary, there’s no need to worry as “Intel will be a very hot stock,” and, “If you give up on it, I think you’re making a big mistake.”
What’s Up the CEO’s Sleeve?
It sounds like Cramer’s confidence in INTC stock rests largely on the chipmaker’s CEO. “I think CEO Lip-Bu Tan has a lot up his sleeve,” Cramer asserted in his contrarian remarks.