Jim Cramer says Intel shakeup is creating a buying opportunity in AMD

CNBC’s Jim Kramer pounded the table at one of his favorite semiconductor companies after stocks tumbled on news of a leadership change in one of its biggest competitors, Intel.

Shares of Advanced Micro Devices are down nearly 4% after Intel announced that it will replace its CEO within a month. Intel shares rose 7% as investors Welcome the news Current CEO Bob Swan will step down to make way for Pat Gelsinger, an Intel graduate who heads VMware, to take over in February.

“As much as Intel needs to change, what matters here is that you now get the opportunity to buy Intel’s most lean competitor, AMD, at a cut of more than three dollars, for something that might not even happen: a shift in Intel within the next three years,” theMad money“The host said.” Gelsinger did a good job at VMware, but Intel doesn’t really need an old Intel hand. She needs a new, young, hungry person who can change the culture, if not blow it up completely. “

At AMD, buyers would receive a piece of a $ 110.4 billion company that nearly doubled its stock last year. Shares in Intel, a bigger player with a market value of $ 233.4 billion, fell more than 16% in 2020 as the company reported delays in new chips under development and lost a major partnership with Apple.

Before these troubles, companies like AMD and Samsung started to take market share from Intel.

Kramer, who praised AMD CEO Lisa Su for overseeing the graphics chip product, also reiterated his love for Nvidia, a $ 335 billion semiconductor operator.

“I would like to buy shares of a company that outperformed Intel, AMD,” Kramer said. “Under the amazing leadership of Lisa Sue, they have moved from a semiconductor that is also powered – always secondary to Intel – to being the company that makes better chips.”

The comments came after a mixed day of stock trading on Wall Street. The Dow Jones Industrial Average It ended the session 8 points, or about 0.03%, at 31,060.47. The Standard & Poor’s 500 And the Nasdaq composite Both extended gains from Tuesday, rising 0.23% to 3809.84 and 0.43% to 13,128.95, respectively.

The three averages remain in the red week so far.

Disclosure: Cramer Philanthropic Fund owns stakes in Advanced Micro Devices and Nvidia.

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