Under CEO Lip-Bu Tan, Intel's foundry problems have been solved, says Jim Cramer

Watch on YouTube ↗  |  June 17, 2026 at 23:54  |  12:22  |  CNBC
Speakers
Jim Cramer — Host, Mad Money

Summary

Jim Cramer discusses the powerful rallies in obscure tech hardware stocks driven by semiconductor shortages and analyst price-target leapfrog. He highlights memory chip makers, semiconductor equipment firms, and data center suppliers. Cramer then makes a detailed case for Intel as his new favorite stock, citing surging CPU demand from AI and a turnaround in its foundry business under CEO Lip-Bu Tan. He also endorses Marriott as a buy-on-dips name and turns positive on Archer Daniels Midland and Tyson Foods.

  • Memory chip stocks (Micron, Seagate, Western Digital, SanDisk) are surging on DRAM shortages, price increases, and relentless analyst target raises.
  • Semiconductor equipment names (KLA, Lam Research, Applied Materials) are also rallying, aided by capital equipment shortages and new long-term contracts.
  • Data center component suppliers (Dell, Marvell, Arm Holdings) are part of the same shortage-led boom.
  • Cramer names Intel his new favorite stock, driven by exploding CPU demand from AI (ratio shift), CEO Lip-Bu Tan fixing the foundry business, and geopolitical supply diversification.
  • Intel's 18A node is in production with potential orders from Apple and Elon Musk's AI project; Cramer sees CPU shortages ahead similar to DRAM.
  • Marriott is touted as a reliable 'up stock' that should be bought every time it dips, with Cramer calling it the best hotel company.
  • Cramer surprisingly turns bullish on Archer Daniels Midland and Tyson Foods, suggesting investors should stop anchoring on past performance.
Ideas
Jim Cramer Host, Mad Money 1:43
Memory chip shortage drives continued upside.
Memory and data storage semiconductor companies are experiencing a spectacular shortage for DRAM and memory chips, causing them to repeatedly raise prices. Apple's CEO confirmed they will have to raise prices due to these memory chips. The stocks keep rallying as analysts play a game of leapfrog, raising price targets again and again, driving massive gains. Cramer argues that despite huge rallies, the shortage-driven upside may not be over.
MU STX WDC SNDK HIGH
Jim Cramer Host, Mad Money 3:10
Semi equipment shortages fuel strong gains.
There are also shortages in commodity semiconductors caused by a lack of semiconductor capital equipment. KLA, Lam Research, and Applied Materials are big beneficiaries. Applied Materials' CEO says the company has secured long-term contracts for the first time, ensuring multiple earnings bumps. These stocks benefit from the same analyst price-target leapfrog dynamic.
KLAC LRCX AMAT HIGH
Jim Cramer Host, Mad Money 3:28
Data center suppliers rally on shortages.
Suppliers of computers and components for data centers, such as Dell, Marvell Technology, and Arm Holdings, are also part of the same shortage-driven and analyst leapfrog rally. These stocks have posted enormous gains and continue to attract upward price target revisions.
DELL MRVL ARM MED
Jim Cramer Host, Mad Money 5:23
Intel's CPU and foundry story are powerful.
Intel is Cramer's new favorite stock. CEO Lip-Bu Tan said agentic AI will require far more CPUs: the CPU-to-GPU ratio could move to 1:1 or even 4:1, and CPUs are Intel's bread and butter. Additionally, Intel's foundry business, which was a mess under the previous CEO, has been fixed under Tan. With TSMC at near full capacity and geopolitical needs for U.S.-based advanced chipmaking, Intel's foundries will become solidly profitable. The 18A node is in production and could attract orders from Apple and Elon Musk's large AI project. Cramer expects CPU shortages like DRAM, leading to price-target boosts and further stock upside, even after a 100-point rally.
INTC HIGH
Jim Cramer Host, Mad Money 8:37
Marriott is a buy-on-dips champion.
Marriott is the best hotel company and behaves as an 'up stock'—every time it declines, investors should pull the trigger and buy. Cramer sticks to that call strongly and does not feel that way about any other hotel name.
MAR MED
Jim Cramer Host, Mad Money 11:04
ADM and Tyson now have upside potential.
Cramer now likes Archer Daniels Midland and Tyson Foods, two stocks he previously hated. He advises investors to stop focusing on where a stock has been and start thinking about where it is going, implying significant potential gains ahead for both.
TSN ADM LOW
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This CNBC video, published June 17, 2026, features Jim Cramer discussing MU, STX, WDC, SNDK, KLAC, LRCX, AMAT, DELL, MRVL, ARM, INTC, MAR, TSN, ADM. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jim Cramer  · Tickers: MU, STX, WDC, SNDK, KLAC, LRCX, AMAT, DELL, MRVL, ARM, INTC, MAR, TSN, ADM