Have Intel investors finally found a reason to get bullish? Jim Cramer certainly doesn't think so.
The chip giant announced a plan to buy back $10 billion of Intel common stock. Intel is funding the buybacks with existing cash reserves.
"As the ongoing growth of data fuels demand for Intel products to process, move and store, we are confident in our multiyear plan to deliver leadership products. While the macro-economic environment remains uncertain, Intel shares are currently trading well below our intrinsic valuation, and we believe these repurchases are prudent at this time," Intel CEO Bob Swan said.
Intel stock is down around 20% year to date amid poor macroeconomic conditions amid the coronavirus pandemic paired with a series of less than stellar results in its chip segment.
When Intel reported quarterly earnings in July, the stock took a dive when the company announced its forthcoming 7-nanometer chips may be six months behind schedule.
Paired with continued strong results from its chief rival Nvidia, Jim Cramer said Intel needs to be more focused on innovation, rather than buybacks.
Cramer added that Intel's current operation is reminding him a lot of the "Intel that didn't do anything."