Jim Cramer says the confusion Intel creates buying opportunities at AMD

CNBC’s Jim Cramer hit the table on one of his favorite semiconductor companies after shares fell on the news of a change of leadership in one of its main rivals, Intel.

Quotas for advanced micro-decline devices fell nearly 4% after Intel announced it would replace its executive in a month. Shares of Intel rose 7% as investors welcomed the news that current CEO Bob Swan would step down to give way to Pat Gelsinger, an Intel student who runs VMware, to take on the role in February.

“As much as Intel needs a change, what matters here is that you now have the opportunity to buy Intel’s most agile rival, AMD, for more than three dollars, for something that might not even happen: a turnaround to Intel “The next three years,” said the host of “Mad Money.” “Gelsinger did a good job at VMware, but Intel doesn’t really need an old hand from Intel. He needs someone new, young, hungry who can shake up the culture, if not make it explode completely. “

At AMD, buyers would get a piece of a $ 110.4 billion company, whose shares nearly doubled last year. Shares of Intel, a larger player with a market capitalization of $ 233.4 billion, fell more than 16% in 2020, as the company reported a delay in new chips in development and lost a key partnership with Apple.

Prior to these issues, companies such as AMD and Samsung began to gain market share from Intel.

Cramer, who has applauded AMD CEO Lisa Su for his administration of the graphics chip maker, also reiterated his love for Nvidia, a $ 335 billion semiconductor player.

“I much prefer to buy the shares of a company that is earning Intel to a pulp, AMD,” Cramer said. “Under Lisa Su’s incredible leadership, they’ve gone from a semiconductor that also worked (always a second violin at Intel) to being the one that makes the best chips.”

The comments came after a mixed day of stock trading on Wall Street. The Dow Jones Industrial Average ended the session with a drop of 8 points, or 0.03%, to 31,060.47. The S&P 500 and Nasdaq Composite extended their gains from Tuesday, up 0.23% to 3,809.84 and 0.43% to 13,128.95, respectively.

All three averages remain in the red week to this day.

Disclosure: Cramer’s solidarity trust has shares in Advanced Micro Devices and Nvidia.

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