Mad Money

Intel CEO to Cramer: 'We are an innovation engine'

Intel's innovation goal
Intel's innovation goal

With "Mad Money" in San Francisco this week, Jim Cramer took advantage of the opportunity by checking in with some of the strongest technology companies in the business.

Intel is the world's largest semiconductor company, which in the face of the internet of things and rise of cloud computing, has struggled to gain revenue as it focuses on the personal computer business at a time when PC use is on the decline.

And while the company didn't report spectacular earnings on April 14th, they weren't as bad as expected either. Cramer thinks this stock is looking pretty cheap right now, and speculated that there could be some amazing things coming down the line from Intel in the future.

The "Mad Money" host sat down with Intel Corporation CEO Brian Krzanich to find out what the "Intel of the Future" could mean for its bottom line.

Brian Krzanich, CEO of Intel.
David A. Grogan | CNBC

"That is one of my big goals, is to show people that we are an innovation engine and that innovation will drive growth. We have had to turn it back on and really get it moving faster," Krzanich said.

The CEO cited various examples of how he has gotten the innovation engine running, by creating innovation around existing PC and connectivity functions.

For example, Krzanich showed a drone built by Ascending Technologies using an Intel Real Sense camera, has provided the drone with the ability to both see and think. Intel flew the drone through a forest at 12 mph unaided by humans. The drone was able to dodge around trees, simply because it was able to see the trees in the forest.

"What we have done now is taken the intellectual property we built on the PC and we are pushing that across a variety of devices," he added.

Inventions such as the drone and the RealSense camera that allows users to take a picture of someone and it will automatically create a video game character that mimics their entire body, show that Intel has stepped up the game in its ability to bring innovative products to market faster.

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The CEO added that the days of a product cycle taking three or four years to come to market, are long gone. He stated that Intel was just discussing products last week that they hope to come out by the end of the year.

With all of the exciting innovations presented by Intel, Cramer questioned the value of why Intel would want to acquire Altera Corporation, which in early April declined an offer of approximately $54 a share from Intel Corp . The "Mad Money" host asked why Intel couldn't just do it on their own, based on the recent revolutions presented.

"I can't comment on rumors that are in the press. But in general the way we think about it is, you want to have a nice supply line of your internal technology that you're developing. That is always first, you always find that first and you drive that first. There are cases where we want to go outside and do acquisitions for intellectual property or to get market share, and we are not afraid to go do that at times," the CEO responded.

Correction: This article has been amended to clarify that the drone was created by Ascending Technologies, using an Intel Real Sense camera. Additional context has also been added to clarify the CEO's position concerning the recent dissolution of talks for Intel to acquire Altera.

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