We're starting a position in a chipmaker that is benefiting from the AI boom in multiple ways

Shortly after the opening bell, we will be initiating a position in Intel , buying 400 shares at roughly $114. Following the trade, Jim Cramer's Charitable Trust will own 400 shares of INTC with a weighting of about 1.10%. We're jumping on the recent pullback in Intel to initiate a new position in this chipmaker. Shares are looking higher in premarket trading after a five-session slide that saw the stock fall from $123.52 to $107.93 through Tuesday, a decline of roughly 12%. The pullback coincided with Nvidia's Computex conference, where fellow Club name Nvidia unveiled a new PC processor designed for artificial intelligence agents. We think the Intel pullback is one worth buying, given our focus is more on the central processing unit (CPU) renaissance inside the data center, as well as its growing foundry business. We're funding this trade with cash raised from Tuesday's sales of Broadcom , Corning and Wells Fargo . As we've explained with our position in Arm Holdings , data center CPUs are soaring in demand because they are better equipped at handling AI agent-drive tasks. Graphics processing units (GPU) from Nvidia are still key for training. However, Intel CEO Lip-Bu Tan has explained multiple times, including on " Mad Money " a few weeks ago, that the ratio of CPUs to GPUs in AI server racks has rapidly evolved as AI moved from training to inference to agentic systems. In the beginning stages of the AI revolution, the ratio used to be one CPU for every eights GPUs. …