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In keeping with Jim Cramer, the transfer in Intel CEO offers traders the choice to purchase AMD

CNBC's Jim Cramer suggested one of his favorite semiconductor companies after the stocks were informed of a leadership change at one of its top competitors, Intel.

Advanced Micro Devices shares fell nearly 4% after Intel announced it would replace its chief executive in one month. Intel stock rose 7% as investors welcomed news that current CEO Bob Swan would step down to take over from Pat Gelsinger, an Intel alum who heads VMware, in February.

"As much as Intel needs a change, the important thing here is that you now have the chance to buy Intel's more agile rival, AMD, for more than three dollars for something that may not happen: a turnaround at Intel within the next three Years ago, "said the Mad Money host. "Gelsinger did a good job at VMware, but Intel doesn't need an old Intel hand. It takes someone new, young, and hungry who can shake up, if not blow up, the culture."

At AMD, buyers would get a piece of a $ 110.4 billion company whose shares nearly doubled over the past year. Shares of Intel, a larger company with a market capitalization of $ 233.4 billion, fell more than 16% in 2020 as the company reported a delay in new chip development and lost a key partnership with Apple.

Before these problems, companies like AMD and Samsung began to gain market share from Intel.

Cramer, who applauded AMD CEO Lisa Su for her responsibility for the graphics chip maker, also reiterated his love for Nvidia, a $ 335 billion semiconductor player.

"I'd much rather buy the stock of a company that beats Intel to a pulp, AMD," said Cramer. "Under the incredible leadership of Lisa Su, they have evolved from a semiconductor that also operates – always second fiddle to Intel – into one that makes better chips."

The comments came after a mixed day of stock trading on Wall Street. The Dow Jones Industrial Average ended the session down 8 points, or about 0.03%, at 31,060.47. Both the S&P 500 and Nasdaq Composite extended their gains from Tuesday, up 0.23% to 3,809.84 and 0.43% to 13,128.95, respectively.

The three averages remain in the red week to this day.

Disclosure: Cramer's charitable foundation owns interests in Advanced Micro Devices and Nvidia.

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