Jim Cramer Advises Against Apple Sell-Off, Favors Intel Chip Stock
CNBC's Jim Cramer urged investors not to heed recent sell recommendations for Apple. He highlighted Intel as his preferred chip sector investment, citing its manufacturing strategy.
Jim Cramer, host of CNBC's "Mad Money," has issued new investment guidance that challenges recent negative sentiment surrounding Apple. On Tuesday, Cramer advised investors against selling Apple shares, despite KeyBanc downgrading the stock to "underweight" with a $250 price target. The analysts cited concerns over reduced device subsidies from wireless carriers and potential impacts from higher prices on Apple's services revenue.
Cramer dismissed these concerns as "conjecture" and expressed his continued confidence in Apple. "I don't want conjecture. I want facts," he stated. "I like Apple here." He suggested that assumptions about Apple's business are overly speculative.
Concurrently, Cramer expressed strong backing for Intel, identifying it as the "Investing Club's" new favorite chip stock. He revealed that the club recently increased its stake in Intel, shifting away from Arm Holdings. Cramer justified this by pointing to Intel's investment in its own manufacturing capacity, contrasting it with Arm Holdings' reliance on third-party foundries.
These remarks follow IBM's weaker-than-expected quarterly earnings report and a slight dip in Apple's stock price. Cramer's advice provides an alternative perspective on Apple's future prospects and underscores his strategic preference for technology companies with direct control over their production capabilities.