Jim Cramer declared on CNBC on Tuesday morning that Intel is heading to $200 per share "like a rocket ship," as the stock traded above its record-high close of $140.95 from June 22 on the final day of the first half of 2026. Intel has surged nearly 285% year-to-date, making it the third-best performer in the S&P 500 in 2026, with Cramer's $200 target representing roughly 40% upside from current levels. The bullish call centers on Intel's central processing units (CPUs) becoming a high-demand commodity as artificial intelligence computing shifts from training to inference, particularly for agentic AI systems that complete tasks autonomously. Cramer stated that CPUs are now "worth a fortune" and "more valuable than GPUs" in this new era, positioning Intel ahead of competitors in the agentic AI infrastructure buildout.
Cramer Positions Intel CPUs as Superior to GPUs for Agentic AI Era
Cramer maintained his "own it, don't trade it" designation on Nvidia but expressed a preference for Intel due to the evolving AI computing landscape. Training large language models requires the power of Nvidia's graphics processing units (GPUs) and competing custom chips, but the day-to-day operation of agentic systems—AI capable of completing tasks autonomously—demands substantial CPU capacity. "CPUs are worth a fortune," Cramer said during Tuesday's Morning Meeting. "They're better, they're more valuable than GPUs" in the agentic era. While Nvidia has entered the CPU market using Arm Holdings' chip architecture, Intel and Advanced Micro Devices have operated in this space for a longer period. AMD is up 170% year-to-date in 2026, and Arm has gained nearly 230%.
Trump Announces Intel-Apple Chip Manufacturing Deal
Intel's chip manufacturing business is providing the company with a competitive advantage, according to Cramer, who said the foundry could address industry production capacity shortages and align with President Donald Trump's goal of bringing advanced semiconductor manufacturing to the U.S. CEO Lip-Bu Tan, who took over Intel in March 2025, has prioritized revitalizing the company's foundry business, which is viewed as a national treasure by the White House. On June 18, Trump said Intel had agreed to a deal with Apple to design and build chips in the U.S. Neither company confirmed the arrangement. Apple's chips are currently manufactured by Taiwan Semiconductor Manufacturing Company (TSMC), the world's dominant foundry, which is also expanding its U.S. presence as a rival to Intel.
Intel Outpaces AMD and Arm in 2026 Stock Performance
With its 285% year-to-date gain, Intel ranks as the third-best S&P 500 stock in 2026. Cramer called Intel "the number one stock in this market," citing the combination of CPU demand for agentic AI and the strategic importance of its foundry operations. AMD has gained 170% in the same period, while Arm Holdings—which earns royalties from its chip architecture and is launching its own chip—has risen nearly 230%. Intel's 7.8% gain on Tuesday pushed the stock above its June 22 record close of $140.95 per share.
FAQ
What is Jim Cramer's price target for Intel stock?
Jim Cramer stated on CNBC on Tuesday morning that Intel is going to $200 per share, which represents roughly 40% upside from current levels. Intel traded above its record-high close of $140.95 from June 22 on the final day of the first half of 2026.
Why does Jim Cramer favor Intel over Nvidia for AI investing?
Cramer said Intel's central processing units (CPUs) are becoming more valuable than Nvidia's graphics processing units (GPUs) as artificial intelligence computing shifts from training to inference, particularly for agentic AI systems that complete tasks autonomously. He stated that CPUs are "worth a fortune" and "more valuable than GPUs" in the agentic era.
What deal did President Trump announce involving Intel and Apple?
On June 18, President Donald Trump said Intel had agreed to a deal with Apple to design and build chips in the U.S. Neither Intel nor Apple confirmed the arrangement. Apple's chips are currently manufactured by Taiwan Semiconductor Manufacturing Company (TSMC).
