I like AMD on the dip, says Jim Cramer
Спикеры
Jim Cramer
— Ведущий, Mad Money
Jim Cramer analyzes a market rotation that is hitting data center and retail stocks, arguing that much of the selling is mistaken or excessive profit taking. He highlights specific buying opportunities in Micron, Corning, AMD, and Applied Materials based on low multiples, fiber optics, chip demand, and a secular equipment shortage. He also defends Walmart against a weak consumer thesis and sees its pullback as overdone.
- Data center stocks sold off due to profit taking and mistaken fears tied to Meta.
- Micron is Cramer's top pick, with earnings multiple seen as far too low.
- Corning's steep decline appears extreme; its fiber could displace copper in data centers.
- AMD's dip offers a rare entry, underpinned by high demand for its GPUs and CPUs.
- Applied Materials is in a years-long bull market fueled by the ongoing chip shortage.
- Walmart's drop is dismissed as excessive, and the oil-driven bear thesis is called nonsense.
Идеи
Earnings multiple too low, like it.
Micron trades at a very low price-to-earnings multiple relative to its earnings power, and the sell-off in data center stocks is partly mistaken profit taking, making Micron his favorite in the group.
Fiber replaces copper, decline excessive.
Corning's decline as the worst S&P 500 stock today seems extreme. The company's fiber technology could replace copper in data centers, including connectors and eventually even within chips, offering a future growth story.
Rare dip, GPUs and CPUs demand.
The dip in AMD is a rare buying opportunity because the company has a strong combination of GPUs and CPUs, both in high demand right now, and such pullbacks almost never happen anymore.
Secular bull market on chip shortage.
Applied Materials' semiconductor capital equipment business is in a long-term bull market due to a widespread chip shortage that will take years to alleviate, according to CEO Gary Dickerson, supporting sustained demand for its machinery.
Decline excessive, bear thesis nonsense.
Walmart's decline is excessive and the bear thesis—that falling oil/gas prices mean consumers no longer need to save at Walmart—is nonsense. The stock has fallen 26 points from its high, which feels overdone.
