Green Chips: Intel Soars After Posting Blowout Quarter 4/24/26

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David Faber (0:57)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Good Friday morning and welcome to Squawk on the Street. I'm David Faber with Jim Cramer. We're live from Post 9 at the New York Stock Exchange. Carl has the morning off. Let's give you a look at futures. We get ready to start trading for the final trading day of the week. A half hour from now, you can see we're set up for a far higher open on the NASDAQ. You may wonder why. Well, that's where our roadmap starts. Intel's low out quarter, that stock is surging in the pre-market, setting to add to what have been historic gains over the course of this year. Plus a new report says that the Iranian foreign minister is likely to meet with the US for peace talks this weekend. This is President Trump says that Israel and Lebanon have agreed to extend the ceasefire by three weeks between those two countries. Another wave of corporate job cuts, Microsoft, Meta, Nike, KPMG, all announce plans to shrink their workforce since that last question there. Joe to David Sacks. All right, let's start with Intel.

Look at that stock. Blowout quarter, upbeat guidance. Here is CEO Lip-Bu Tan from last night's earnings call. He is talking about the chip maker's long-term growth prospects.

Lip-Bu Tan (2:16)

Intel processes some of the most vital assets necessary to be successful and to flourish in this era of extraordinary opportunity for the semiconductor industry. With a stronger balance sheet, a new leadership team, a rejuvenated and motivated workforce, and a renewed focus on engineering execution, we are turning our attention squarely towards innovation to capture opportunities in the near term, and to position the company for robust growth in the long term.

Jim Cramer (2:58)

Yeah, real deal.

David Faber (3:00)

Talk to me.

Jim Cramer (3:01)

Okay. So most of the analysts on the street either had a hold or sell on Intel. So you're going to see multiple days when this stock goes up as they all have to capitulate.

When I spoke to Lip-Bu yesterday.

David Faber (3:13)

Well, will anybody really listen to these analysts? I mean, to your point, like, what is the point of Citi now upgrading to a buy from neutral?

Jim Cramer (3:20)

Well, they can't just, they can't keep it.

David Faber (3:21)

By the way, I love Stacey Raskin. He's had this thing on market perform forever.

Jim Cramer (3:25)

Look, I think he's great, but this is, I'm just saying that you're going to have, it's going to not come in because every time it comes in, one of these guys is going to have to upgrade it.

David Faber (3:32)

Okay.

Jim Cramer (3:33)

And the sales force has to make that call, unfortunately. I spoke to Lip-Bu, first of all, he's a man of tremendous humility, and did not say, I did a great job, whatever. He just said, look, we're executing better, we can execute much better than this.

He did point out that what really took everyone by surprise was the number of CPUs you need per agent, so to speak. They thought there was going to be eight GPUs to one CPU, then it was going to be eight GPUs in five, and now it's a one-to-one relationship. So he said the number that you need is so far in excess that everybody who has CPUs is going to make a lot of money.

David Faber (4:13)

Is this more for inference?

Jim Cramer (4:15)

Yes, for inference.

And what I also liked when he said was, you haven't seen me do packaging yet. He's packaging chips that everybody likes, because that's really his strength. It's packaging. That's how he saved cadence. This man has invested more in semiconductors than anyone in our country.