Jim Cramer Says "A Mismanaged Intel Needed President Trump"

Intel Corporation (NASDAQ:INTC) is one of the stocks Jim Cramer was focused on. Cramer noted the importance of the government’s stake in the chipmaker, as he remarked:

“They joined the previous winners of the PC revolution: Intel, Microsoft, and Apple… Those winners, they were amazing. They were run by the smartest people who took advantage of everything you could ever take advantage of, and they made their shareholders fortunes. As they grew, we heard at every turn that they were just parts of the bubble, and then when the bubble burst, it would just be a matter of time before they would burst too. A matter of time, a matter of time, a matter of time. Well, the time mattered. Nothing happened. Sure, Intel and Cisco didn’t soar like the others… A mismanaged Intel needed President Trump to get the money to be able to stay a survivor.”

Intel Corporation (NASDAQ:INTC) develops and delivers advanced computing, semiconductor, and AI solutions, including processors, GPUs, memory, networking, and edge platforms. The company’s technologies support workloads across cloud, AI, autonomous systems, and digital transformation applications. Additionally, on August 25, Cramer said:

“I know the White House is taking a 10% stake in the semiconductor company. It’s unorthodox, but Intel’s been a multi-year disaster, and our country needs this company to be on firmer footing… We need a healthy, viable Intel because we can’t simply rely on Taiwan Semiconductor to manufacture our most advanced chips…

After the government freed up those funds in return for a 10% stake, turning a grand equity, I think he’s (CEO Lip-Bu Tan) going to pull it off. I didn’t understand the criticism of the president on this one. Why shouldn’t the government take the stake and get the upside? This is hardly unprecedented…

I say, look, if it’s a national security issue and one of our important companies might be failing, you better believe it’s going to get bailed out. Doesn’t matter if the president’s a Democrat or Republican; remember, Trump made this investment with money that was authorized under Biden. Intel could not be allowed to fail, people. End of story. The president gave Intel new life by fixing its balance sheet. Now, Intel can recreate its greatness with a proven turnaround artist as CEO Lip-Bu Tan is. The government wins. The people win. The shareholders win. What more do you want?”

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Disclosure: None. This article is originally published at Insider Monkey.