Cramer Remix: The most important semiconductor bellwether has people talking
Published Mon, Jul 22 2019 8:07 PM EDT
Key Points
- Micron’s upgrade “was the talk of the town in the Hamptons, of all places. I kid you not,” CNBC’s Jim Cramer says.
- Semiconductor equipment companies also rallied on the news, the “Mad Money” host says.
- “Makes sense: If you really believe commodity chips are bottoming, then you recommend the capital equipment stocks,” he says.
continues at cnbc.com
“Micron is perhaps the most important semiconductor bellwether out there: their DRAMs and flash chips go into nearly everything,” the “Mad Money” host said. “This upgrade, which came out yesterday, was the talk of the town in the Hamptons, of all places. I kid you not.”
Micron, which has a $52.1 billion market cap, rallied 3.67% during the session to close above $47 per share. Prior to that, the stock ran up about $12, from about $33 per share, following optimistic outlook during its June earnings report. The rest of the semiconductor sector, including Texas Instruments, which reports earnings Tuesday, also rallied on the news.
With Goldman forecasting that commodity chips are bottoming, semiconductor equipment companies such as Applied Materials and Lam Research saw a boost, Cramer said.
“Makes sense: If you really believe commodity chips are bottoming, then you recommend the capital equipment stocks,” he said. |
