Intel's stock outpaces NVIDIA in YTD gains, but the chipmaker faces a balancing act between aggressive foundry investment and the need for sustained market penetration in its data center business.
Cramer highlights stronger demand for NVIDIA's GPUs, and the company's data center revenue doubled with strong Q3 guidance, though FY28 growth is expected to slow.
Intel's stock is up over 170% YTD with a data center revenue beat and foundry momentum, but the segment's operating loss and Piper Sandler's caution temper upside expectations.
Intel Corporation shares have surged over 170% year-to-date, fueled by a strong data center revenue beat and strategic foundry expansion. While Jim Cramer highlights the firm's long-term potential, analysts warn that heavy capital expenditure and operating losses in the foundry segment may limit near-term upside. Meanwhile, NVIDIA continues to dominate the AI GPU market with 117% revenue growth, though investors are monitoring a projected slowdown in FY28.
The foundry business is essential for Intel's long-term strategy to capture global chip fabrication market share, but it currently requires massive capital expenditure, resulting in a $2.1 billion operating loss in Q2.