Jim Cramer’s Bold Call: Why TSM’s U.S. Expansion Is Undermining Intel’s Relevance

In a fiery segment on Mad Money, Jim Cramer delivered a stinging critique of Intel (INTC), asking investors: “Who the heck needs Intel?” The comment, which has sparked debate across Wall Street, centers on the growing dominance of Taiwan Semiconductor Manufacturing Company (TSM) in the global semiconductor race—and its strategic moves to plant its flag in the U.S.
The backdrop? TSM’s bold expansion plans to build advanced chip factories in the U.S., directly challenging Intel’s traditional stronghold in cutting-edge manufacturing. Cramer’s question isn’t just rhetorical; it reflects a seismic shift in the semiconductor industry, where TSM’s technological prowess and geopolitical gambits are reshaping investor sentiment.

Cramer’s Case Against Intel
Cramer’s skepticism of Intel hinges on three pillars: weak financials, declining market share, and a failure to keep pace with rivals like TSM and NVIDIA (NVDA). Intel’s Q1 2025 earnings report, which missed estimates by a wide margin, underscored these challenges. The company’s guidance for the year also disappointed investors, with its new CEO, Lip-Bu Tan, admitting that restructuring efforts are still in early stages.
Meanwhile, TSM’s advancements in 3-nanometer chip technology—a critical component for AI-driven data centers—have positioned it as the go-to partner for tech giants like Apple and AMD. Cramer argues that these capabilities render Intel’s current offerings obsolete, especially as demand for high-performance AI chips soars.
The market has already priced in this divergence: TSM’s stock has surged 28% year-to-date, while Intel’s shares have plummeted 19%. The gap reflects investor confidence in TSM’s growth trajectory versus Intel’s stagnation.
Why TSM’s U.S. Expansion Matters
TSM’s decision to build a $12 billion chip plant in Arizona isn’t just about proximity to U.S. customers—it’s a geopolitical play. By securing a foothold in America, TSM reduces reliance on Taiwan’s manufacturing capacity and mitigates risks from trade tensions, which the Insider Monkey analysis notes could intensify under new administration policies.
Intel, by contrast, is struggling to replicate this strategic clarity. Despite announcing partnerships to bolster its foundry business—including a rumored collaboration with TSM—the company’s internal chaos (including leadership turnover and plant delays) has left investors wary.
The AI and Data Center Tsunami
The real battleground is in AI infrastructure. TSM’s advanced nodes are critical for building the chips that power AI data centers, a market projected to hit $120 billion by 2027. Intel, meanwhile, has fallen behind in this space, with its AI-focused Ponte Vecchio chip trailing TSM-manufactured alternatives in performance.
Cramer’s argument gains further traction when considering market share: TSM now commands 54% of the global foundry market, up from 52% in 2023, while Intel’s foundry business trails far behind. Even in its home turf of CPU manufacturing, Intel’s x86 processors face existential threats from AMD’s TSM-made chips, which outperform them in key metrics.
Conclusion: A New Semiconductor Order
Jim Cramer’s “Who the heck needs Intel?” isn’t just a soundbite—it’s a reflection of a new reality. TSM’s technological leadership, coupled with its geopolitical agility, has cemented its status as the industry’s titan. Intel’s path to recovery is fraught with obstacles: stagnant innovation, weak earnings, and a lack of clear strategic direction.
The data is unequivocal: TSM’s stock has outperformed Intel’s by 47 percentage points over the past year, while its market cap ($490 billion) now exceeds Intel’s ($150 billion) by a factor of three. For investors, the message is clear: the semiconductor crown has moved to Taiwan, and Intel’s survival hinges on a turnaround that, so far, has shown little promise.
In this new era, the question isn’t whether Intel can catch up—it’s whether it can even stay relevant.
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