Jim Cramer delivered his daily Mad Dash segment on August 11 focused on Intel, expressing confidence in the chipmaker’s $20 billion stock offering announced this week and suggesting the company may be preparing to announce a major manufacturing customer.
Intel upsized its previously announced stock offering from $15 billion to $20 billion on Tuesday, pricing shares at $95 each. The company announced the original $15 billion offering on Monday, which initially spooked investors and sent shares down 4 percent. The offering is expected to close on August 12 and will raise approximately $19.7 billion in net proceeds after underwriting costs.
Cramer said he remains bullish on the move despite the initial market reaction. “I’m confident in Intel’s management and overall strategy,” he noted during the Investing Club’s morning meeting. He expects the capital will fund Intel’s third-party chip manufacturing business, a crucial growth area as tech giants race to build AI infrastructure. Cramer speculated that Intel would not pursue such a large stock sale “unless they have something in hand,” potentially referring to a new foundry customer deal.
“I still think this is my favorite stock in the portfolio,” Cramer added, maintaining his longstanding bullish stance on the chipmaker. His confidence centers on CEO Lip-Bu Tan’s turnaround efforts. Cramer has repeatedly praised Tan for knowing “how to build things,” referencing the CEO’s success in restructuring Intel’s operations and solving foundry business challenges.
Intel’s stock has benefited significantly from the AI infrastructure boom. Shares have surged 175 percent year-to-date in 2026, driven by strong demand for the company’s central processing units as tech companies expand their AI capabilities. In its second quarter, Intel posted revenue of $16.1 billion, up 25 percent year over year, with AI revenue jumping 59 percent to $6.3 billion.
Last month, Intel raised its 2026 capital expenditure guidance to $20 billion, citing strong customer demand and the need to support factory tooling. Finance Chief David Zinsner told CNBC the company is bracing for a “meaningful increase” in capital spending in 2027. The stock offering announced this week demonstrates Intel’s commitment to funding the expensive build-out of manufacturing capacity to meet the surge in AI-related computing demand.
Cramer’s bullish outlook on Intel stands in contrast to some market skepticism about the stock’s valuation after its dramatic rally. However, he argues that the company’s foundry business—manufacturing chips for customers like Apple and others—positions Intel to capture significant value from the ongoing AI infrastructure investment cycle.
Sources
- CNBC — Cramer’s Mad Dash segment on Intel and Investing Club morning meeting commentary on the stock offering
- CNBC — Intel upsizes stock offering to $20 billion at $95 per share, August 10-11, 2026
- Intel Newsroom — Official announcement of upsize and pricing of $20 billion common stock offering
- CNBC — Intel’s Q2 2026 earnings and capital expenditure guidance
