Jim Cramer's Trust Buys 100 Intel Shares at $97.97 as AI Trade Recovers

Jim Cramer's Charitable Trust is buying 100 shares of Intel at roughly $97.97 shortly after the opening bell. Following the trade, the Trust will own 1,300 shares of INTC, increasing its portfolio weight to about 3.20% from 3%. The purchase aims to build out the position and lower the average cost basis as the AI trade regains footing. AMD confirmed that central processing unit demand is growing well beyond internal expectations, reinforcing confidence in the chipmaker sector despite Intel shares remaining well below the after-hours levels reached on July 23.

Trust Increases Intel Position to 1,300 Shares

The Trust is buying 100 shares of Intel at roughly $97.97. After the trade, the Trust will own 1,300 shares of INTC, increasing the portfolio weight to about 3.20% from 3%. Intel shares gained 10% in Tuesday's session but are down slightly in premarket trading following a strong AMD quarter. AMD confirmed that CPU demand is growing well beyond internal expectations. The purchase is intended to further build out the position and lower the average cost basis.

Intel Stock Reversed from $113 Post-Earnings High on July 23

Intel shares have recovered significantly from the levels where the Trust made its lowest buy about a week and a half ago. The stock remains well below the after-hours levels it reached on July 23, when Intel delivered a fantastic earnings report. The stock traded as high as about $113 that evening before giving back all its gains and dropping 7% to $92 the next day during regular trading. The Trust struggled with the reasons behind that nasty reversal, considering whether it was the CFO indicating they may tap the capital markets to fund significant increases in capital expenditures, the lack of major customer announcements for its third-party foundry business, or simply profit-taking after a huge run in the stock this year.

Forced Hedge Fund Selling Cited as Reversal Cause

The fall in Intel was more likely tied to forced selling from a highly levered, AI-focused hedge fund that took on too much risk and was forced to unwind its popular AI trades when the group sold off in July. The combination of the end of forced sellers with strong capex commentary from the hyperscalers this earnings season has reignited the AI theme. The Trust believes Intel is deserving of trading at least back to that post-earnings $113 level.

FAQ

What did Jim Cramer's Charitable Trust buy on this trade date? The Trust is buying 100 shares of Intel at roughly $97.97 shortly after the opening bell, increasing its total holdings to 1,300 shares and raising the portfolio weight to about 3.20% from 3%.

Why did Intel stock drop from $113 to $92 after the July 23 earnings report? The fall in Intel was more likely tied to forced selling from a highly levered, AI-focused hedge fund that took on too much risk and was forced to unwind its popular AI trades when the group sold off in July, rather than fundamentals from the earnings report itself.