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Intel CEO Brian Krzanich underestimated demand for PCs, Cramer says

Brian Krzanich, CEO of Intel.
Justin Solomon | CNBC
Brian Krzanich, CEO of Intel.

CNBC's Jim Cramer said on Friday that Intel CEO Brian Krzanich underestimated demand for personal computers after the company raised its revenue outlook for the third quarter.

Intel raised its forecast earlier in the day, citing in part signs of improving demand for PCs. Shares of Intel briefly jumped more than 4 percent Friday morning.

"Brian Krzanich is really a very forward thinking guy," Cramer said on "Squawk on the Street."

He said although Chief Financial Officer Stacy Smith is very conservative, "I would say that Intel is totally a function and has been for a while of gross margin and inventory ... and I think this is the first time where they really did underestimate demand."

The company expects revenue to be $15.6 billion, — plus or minus $300 million — compared with a prior estimate of $14.9 billion.

Intel's stock was trading higher mid-morning Friday at $37.46 a share. The stock is up 9 percent this year.