Mad Money

Cramer: Intel could split in two

Cramer: Intel could split in two
Cramer: Intel could split in two

Jim Cramer has a hunch that Intel could be on the verge of splitting itself into two.

He believes that the world's No. 1 chipmaker could break itself into a P.C. semiconductor company, and a high growth company geared towards the internet of things and data centers.

Cramer came to this conclusion when Intel announced that CFO Stacy Smith would move to a new position to oversee sales and manufacturing.

When Cramer interviewed Intel CEO Bryan Krzanich on CNBC's "Squawk on the Street" on Wednesday, he posed the question to him if the company could break up and have Stacy run the slower growth P.C. chip business, and Krzanich run the faster growing segment.

"Bryan made me feel like I read his mind. And why not? I think the move would unlock tremendous value," the "Mad Money" host said.

I say if you own Intel, keep it. If you don't, consider it. Bryan is going to bring out the value and you don't want to miss it.
Jim Cramer
Brian Krzanich, CEO of Intel.
Justin Solomon | CNBC

In fact, Intel cited the decline in P.Cs as one of the reason for reducing its numbers this week, and announced it would lay off 12,000 employees. Cramer thinks employment had to shrink in order for Intel to find the money to expand the faster moving elements of its business.

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"So, I put it out there, calling it a conspiracy theory but just venturing out why Stacy Smith would be moving around the company instead of staying CFO, perhaps being groomed to run a spun-off processor business," Cramer said.

The stock is another reason why Cramer believes he is right about a break-up at Intel. He found it strange that the stock went up on Wednesday, especially if analysts claimed they were disappointed by the most recent quarter.

"I say if you own Intel, keep it. If you don't, consider it. Bryan is going to bring out the value and you don't want to miss it," Cramer said.

It may not happen tomorrow, but with a juicy 3 percent yield and a strong balance sheet, Cramer thinks investors will be paid to wait.

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