Intel shares were more than 4 percent lower Thursday after tech publication The Register reported some of the company's processors have a "fundamental design flaw" and security vulnerability. Shares of AMD were up more than 5 percent on the news.
Intel CEO Brian Krzanich told CNBC on Wednesday that researchers at Google made Intel aware of a widespread security exploit "a while back." The company is working on fixes that could start next week.
"There is some possibility that AMD will gain some business in the data center," Cramer said on "Squawk on the Street." "It's going to be a situation that [CEO Lisa] Su at AMD will take advantage of. And whether you think that's right or wrong, I mean the fact is that you can't have a flawed data center."
"This is a real issue. It's a messy issue. It's not a good situation for Intel, candidly," said Cramer, host of CNBC's "Mad Money."
Cramer said he was also surprised by the security disclosure. "I think Intel is maybe the world's greatest manufacturer," he said. "I think they're going to fix it. I think we won't think about it a month from now, but the fact is that AMD is going to use it as a chance to take share."
"Su is a very aggressive CEO," Cramer said, "and this is her time. And she's got a lot of things going for her."
Intel did not immediately respond to a request for comment.
— CNBC's Anita Balakrishnan and Tae Kim contributed to this report.