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Cramer: Intel’s biggest problem is generational

Intel cuts revenue outlook

Intel's biggest problem is a generational one, CNBC's Jim Cramer said Thursday.

"[PC's] is not where the market is going," Cramer said on "Squawk on the Street." "It's all hand-held; 55 percent of people can't live without their hand-held [devices]. Intel is not known for its hand-held."

"When you're on a plane, people are using their cellphones to watch movies," Cramer said.

Cramer made his remarks shortly after the chip-making giant cut its first-quarter guidance from about $13.7 billion to about $12.8 billion. The company's stock plunged after the announcement. (Click here for the latest price.)

Intel blamed the lower outlook on poor demand for desktop upgrades, as well as "challenging macroeconomic and currency conditions, particularly in Europe."

The euro recently fell to near-12-year lows as the dollar soared on expectations that the Federal Reserve would raise rates this summer.

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Microsoft stock also traded lower after Intel's warning, which said the Windows upgrade cycle had been weak.

Nevertheless, Cramer believes Intel will continue to make a lot of money. "[Brian] Krzanich is doing a great job, but you're really fighting a tide, which is a Microsoft tide. [Satya] Nadella really had to do something big, and he didn't deliver."

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