Jim Cramer Says Intel Sapphire Delay Is 'Another Reason' To Buy AMD

CNBC host Jim Cramer said that Intel Corp. INTC delaying production of one of its newest chips, code-named Sapphire Rapids, is “another reason” to buy rival chipmaker Advanced Micro Devices Inc. AMD.

What Happened: Cramer took to Twitter to say that Intel’s Sapphire delay is something he has come to expect from this “once great company.”

I know many love Intel as i used to but this Sapphire delay is something i have come to expect from this once great company. Another reason to buy $AMD

— Jim Cramer (@jimcramer) June 30, 2021

The “Mad Money” host added that while Intel’s CEO Pat Gelsinger is doing a “very good job,” AMD’s CEO Lisa Su is very competitive and not going to lose that lead quickly.

I think Pat Gelsinger is doing a very good job at Intel. But Milan was not built in a day and AMD is no longer what AMD was. Lisa Su is very competitive and not going to lose that lead so quickly...if at all... $AMD, https://t.co/2Cj9QmVLog name

— Jim Cramer (@jimcramer) June 30, 2021

See Also: AMD's Stock Becomes Overbought And Heads Toward Resistance

Why It Matters: Intel said in a blog post that it is delaying production of the “Sapphire Rapids” Xeon processors to the first quarter of 2022 and will start ramping shipments beginning in the second quarter.

The delay is the first under Gelsinger, following significant delays in chip-making advances under his predecessor, Bob Swan.

However, the move is seen as creating an opportunity for AMD to gain market share. The chipmaker secured Tesla Inc. TSLA and Alphabet Inc. GOOG GOOGL subsidiary Google as its high-profile customers earlier this month.

AMD succeeded in expanding its data-center chip market share to 8.9% in the first quarter of 2021 from 1.8% in 2018. Intel maintained the lead with a 9.1% share.

Price Action: Intel shares closed almost 1.1% lower in Wednesday’s regular trading session at $56.14 and further declined 0.2% in the after-hours session to $56.03.

AMD shares closed 4.9% higher in the regular trading session at $93.93 and further rose 0.3% in the after-hours session to $94.18.

Read Next: Chipmakers Micron, AMD Become Top WallStreetBets Interests Alongside Clover Health, SoFi