People describe Mad Money host Jim Cramer in various ways. But is he a contrarian? It seems so, especially after he recently made a surprisingly optimistic comment regarding semiconductor giant Intel’s stock (NASDAQ: INTC).
Under CEO Lip-Bu Tan’s guidance, Intel seems to have transitioned from a struggling company to one on the upswing. This shift began to surface in early January, following a strong performance at CES 2026, leading to predictions that Intel’s stock would soar to over $100.
However, on January 24, the situation shifted dramatically when Intel’s stock plummeted by 17% after a disappointing financial report for the fourth quarter of 2025. Sentiment turned negative almost overnight. Yet, Cramer’s comments hinted at a potential rebound for Intel and its investors.
While Intel’s stock had surged 40% since the start of the year, it could easily revert to more typical levels. Traders were just waiting for a reason to cash in on their profits and seem to have seized on Intel’s quarterly performance as a trigger for selling.
On the surface, Intel’s report wasn’t bad. For the quarter ending in December, the company posted revenues of $13.7 billion, surpassing the analysts’ expectations of $13.4 billion.
Moreover, Intel reported adjusted earnings per share at $0.15, significantly higher than the consensus estimate of $0.08. So, it raises the question: did INTC stock really deserve a 17% drop in a single day? Perhaps investors just needed an excuse to take profits.
They found that excuse in Intel’s forward guidance. Wall Street predicted that Intel would generate $12.6 billion in the first quarter of 2026, while Intel projected a midpoint of $12.2 billion.
Additionally, analysts anticipated flat earnings per share for Q1 2026, while Intel was expected to post a small profit of $0.08 per share. It seems that traders focused on future predictions rather than the actual results presented.
In a recent post-earnings call, Intel’s CEO acknowledged the company is struggling to meet demand for artificial intelligence (AI) chips. “We are disappointed that we will not be able to fully meet market demand in the short term,” Tan noted.
This admission likely contributed to the drop in INTC stock. Still, Cramer remains optimistic about Tan and Intel going into 2026. He remarked that some view Intel’s disappointing quarter as a sign of failure. However, he disagrees: “That’s wrong. We need to be cautious. The demand is insane.”
Cramer is referring to the robust demand for Intel’s AI chips, which, of course, makes sense in light of Tan’s admission about supply challenges.
His bullish views are quite controversial given that INTC stock had already risen by 40% before the earnings announcement. Is the subsequent 17% drop justified? Could there be further declines?
According to Cramer, there’s no need for alarm. “Intel will be a very hot stock,” he stated, asserting, “I think it would be a major mistake to walk away now.”
Cramer’s faith in INTC seems closely tied to the actions of its CEO. “I think CEO Lip Vu Tan is doing a lot of positive things,” he opined in a somewhat contrarian perspective.
Tan claims Intel is “working tirelessly to improve efficiency and boost production” at its plants, which should reassure shareholders about potential supply-demand issues over the coming year.
Cramer has pointed out that Intel’s stock price has “skyrocketed since Tan took over as CEO.” He expressed confidence that, under Tan’s leadership, Intel “is starting to reclaim its status as the top semiconductor manufacturer in the U.S.”
These observations seem reasonable; owning shares of INTC this year wouldn’t be a bad idea. Still, it might be wise to temper bullish expectations, as the stock could face further pressure after such a strong start to 2026.
Only time will reveal whether Tan is genuinely “doing a lot.” If he is, Cramer’s contrarian stance could reward smart investors who believe in Intel.
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