Between a change of leadership and focus on innovation, Intel is undergoing a turnaround that returns the technology company to its glory days and should put rivals on notice, CNBC's Jim Cramer said Friday.
"If you are negative on Intel, you're going to have to cover your short because ... it yields three and change here. If you have a 'sell' on Intel, the pressure to upgrade is monumental and we have a leader of old tech," Cramer said on "Squawk on the Street."
Intel was both the S&P 500's biggest gainer and the Nasdaq's most active name, jumping 6.2 percent to $29.70 in early trading on Friday. A day earlier, the Dow component raised its full-year revenue outlook, citing stronger-than-expected demand for personal computers used by businesses.
Read MoreIntel raises outlook on stronger PC demand
"You're going to dust off the playbook, you're going to have to dust off the '90s playbook of what happens when Intel gets it right. It's never been one quarter," he said. "Those that are thinking that it will go back to being bad or think that they'll keep spending on CAPEX don't know this company."
To Cramer, Intel has benefited from the leadership of CEO Brian Krzanich, who he called a "visionary." Krzanich took the helm of the tech company in May 2013.
Intel is also helped by a strong team of engineers, who will lead the company to innovations in gaming and devices like tablets, Cramer said.
"They are back. Look out Samsung."
—By CNBC's Drew Sandholm, with Reuters.