Jim Cramer's fund adds to Intel position at $97.97; AI trade \"regains footing\" on hyperscaler capex

Jim Cramer's Charitable Trust announced a $97.97 entry on 100 additional Intel shares, raising its stake to 1,300 shares and increasing portfolio weight from 3.0% to 3.2%. The move comes after Intel bounced 10% on Tuesday and as the AI hardware trade shows signs of recovering from a July sell-off that forced unwinding by a highly leveraged AI-focused hedge fund.

Intel fell 7% to $92 the trading day after posting stellar Q2 earnings on July 23, when the stock had reached $113 intra-day. The crash was initially attributed to CFO commentary about tapping capital markets for increased capex, lack of major third-party foundry customer wins, or simply profit-taking. Cramer now attributes the reversal to forced selling by over-leveraged hedge funds, not fundamental business deterioration. AMD subsequently confirmed strong CPU demand growth "well beyond internal expectations," providing additional confidence in cyclical demand recovery.

The addition signals Cramer's view that the AI trade is regaining traction following the July volatility. He expects Intel to trade back to the $113 post-earnings level, arguing the stock remains well-positioned despite the interim pullback. Recent earnings commentary from hyperscalers about strong capex spending provides a tailwind for chip stocks' near-term sentiment.

For infrastructure teams and procurement teams, the trade-desk move is a bellwether: whipsaw moves in high-beta AI chip positions are normalizing, and mega-cap allocators are re-entering on technicals and demand signals rather than panic-driven exits. The fund's confidence in CPU demand cycling higher (backed by AMD's demand commentary) suggests enterprise and data-center refresh cycles remain robust despite summer volatility.