Tech

Cramer: I have faith others can take charge at Intel after Brian Krzanich's ouster

Share
Key Points
  • CNBC's Jim Cramer says he was "stunned" by news that Brian Krzanich has resigned as Intel chairman and CEO.
  • However, the "Mad Money" host adds he is confident that others can take charge at the tech company.
VIDEO2:5902:59
Intel's Brian Krzanich resigns

CNBC's Jim Cramer said Thursday he was "stunned" by news that Brian Krzanich had resigned as Intel chairman and CEO.

However, the "Mad Money" host added he is confident that others can take charge at the tech company, which has seen its shares rise more than 54 percent over the past year.

Krzanich "was a very thoughtful man ... and was reinventing Intel," Cramer said, moments after Intel announced that Krzanich resigned after being confronted about a "consensual relationship" with an employee.

But, Intel's numbers are "fabulous," Cramer said on "Squawk on the Street." "People continue to underestimate the conversion to the cloud" and "I really loved what Krzanich was doing, I loved the path that he had put the company on."

"Krzanich set the path to be far more than just P.C.," Cramer added.

Shares of Intel rose initially after the announcement but were lower in midmorning trading. Chief Financial Officer Robert Swan will step in as interim CEO, effective immediately, Intel said in a statement. Separately, Intel also raised its guidance for the second quarter.

Cramer, who has previously called himself an "Intel-aholic," has praised Krzanich's work at Intel before. The company's stock rose about 120 percent during Krzanich's tenure as CEO.

Cramer, on "Mad Money" in March, spoke with Krzanich about the transformation of his business to a more data-centric model.

As Intel undergoes a broader strategic shift to focus more on data, Krzanich highlighted how the company's new lines of business — such as the data center and the acquisition of Altera and its circuits business — was changing how Intel makes money.

WATCH: Krzanich exit won't be devastating to Intel, says Stewart

VIDEO4:5304:53
Krzanich exit won’t be devastating blow to Intel, says NYT’s Stewart
Disclaimer