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TheStreet.com TV Recap: Intel Inventories Bode Well

Cramer says the chipmaker had a 'beautiful quarter.'

Intel

(INTC) - Get Report

shorts were set up Tuesday with a

Wall Street Journal

article saying that there was a lot of double ordering of the company's chips, Jim Cramer said on TheStreet.com TV's Wall St. Confidential

Web video Wednesday.

In the article, "Intel Soars; Did Customers Overorder?" the writer uses a source from Pacific Crest who had a sell rating on the stock, he said.

"A lot of people don't understand the nature between the media and what happens," Cramer said. "It's really remarkable how powerful the press is, particularly when it's emphasizing a negative story right at the time when a really positive story comes."

However, Cramer still believes Intel is going to $30 because "it's all in the numbers," he said. "There was no double ordering, the strength was just there." Intel was trading at $26.42 recently.

"This has always been an inventory play," Cramer continued. "When you go into the fourth quarter with lean inventories, and these were the leanest inventories in years, that means you're going to see average selling price not come down,

but maybe even lift a little."

Not only was there no double ordering, but there was a shortage, he said. That's what the inventory tells people, and in fact, "there may actually be a grain market where

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customers are going to be getting Intel chips that they can't get."

"When you have revenue guidance that's higher, when you have inventories very low, when you have gross margins going up,

it all increases the prospects for a very big January upside surprise," Cramer explained. "I would urge people to realize that this was the first good quarter that Intel's had in years, and that stock is a screaming buy anything below $27."

"This was a beautiful Intel quarter, just a beautiful one."

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