Jim Cramer Just Dumped Tech Stocks. He’s Loading Up on Intel Instead of Cerebras.

On Mad Money, a caller caller pressed Jim Cramer connected Cerebras Systems (NASDAQ:CBRS) with a pointed setup: "Last week, CrowdStrike chose Cerebras to powerfulness their real-time Falcon AI detection. When George Kurtz vouches for your inference feed, isn't it clip to halt treating Cerebras similar a post-IPO trade?"

Cramer conceded the valuation math. "It's surely tenable to accidental it's down truthful overmuch and the P/E aggregate is not that high," helium said. Then helium redirected the money. "I don't privation to bargain a batch of tech. The lone 1 that I'm presently buying is Intel, which I deliberation has amended prospects than Cerebras. But I similar your logic."

That is simply a narrow, deliberate call. Cramer is holding his tech publication dependable and directing caller superior toward the bequest incumbent, which helium sees arsenic the 1 AI semiconductor sanction earning it close present implicit the hyper-growth axenic play.

Why Intel Is Cramer's Pick

Intel (NASDAQ:INTC) delivered the benignant of 4th that supports Cramer's conviction. Q2 FY2026 gross landed astatine $16.13 billion, up 25.4% twelvemonth implicit year, described by CEO Lip-Bu Tan arsenic "strongest gross maturation successful much than 15 years." Non-GAAP EPS of 42 cents bushed the 21-cent estimation by 93.1%, a plaything from prior-year losses to existent operating profit.

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The AI communicative is present connected Intel's income statement. The Data Center and AI conception posted $6.26 cardinal successful revenue, up 59% twelvemonth implicit year, and Intel Foundry grew 31% adjacent arsenic it absorbed a $2.1 cardinal quarterly operating loss. Tan framed the setup this way: "AI is driving unprecedented request for compute, and arsenic we proceed to execute, Intel is well-positioned to seizure sustainable maturation crossed our CPU franchise, ASICs, precocious packaging and immense wafer foundry network." The afloat merchandise is disposable successful Intel's Q2 2026 8-K filing.

The banal has already tally hard. INTC is up much than 118% twelvemonth to day and 321% implicit the past year, trading astir $85.97 connected July 29. The banal is down 35% implicit the past month, though, and its guardant P/E sits astatine 105, with the mean expert people astatine $115.65. Backing the turnaround: an NVIDIA (NASDAQ:NVDA) $5 cardinal equity investment, SoftBank's $2 cardinal involvement and a U.S. authorities equity presumption tied to CHIPS Act funding.