Selling in the hottest semiconductor stocks was brutal, says Jim Cramer
Speakers
Jim Cramer — Host, Mad Money
— CNBC host, Mad Money
Summary
- Market volatility is being driven by geopolitical tension (Iran drone strikes) and a "Black Tuesday" crash in South Korea (KOSPI down 7.2%), causing contagion in US markets.
- A specific dislocation has occurred in the semiconductor memory sector; US stocks are selling off due to margin calls in Korea (Samsung/SK Hynix) rather than fundamental weakness.
- The "AI will replace Enterprise Software" narrative is showing signs of exhaustion. Major SaaS players (Salesforce, Workday) are rallying on mediocre news, signaling a potential bottom.
- Cramer advises against trading war headlines (oil spikes) and instead focusing on company-specific fundamentals that are being unfairly dragged down by macro panic.
Trade Ideas
Private Equity stocks are under pressure due to "redemption jitters" at a private credit fund run by Blackstone. While Cramer acknowledges the professional anxiety, he explicitly calls Blackstone a "good firm." Watch for a potential entry if the redemption fear proves to be panic rather than systemic, but be aware professionals are "on edge." A liquidity cascade in private credit markets.
The "Big Four" enterprise software companies (Adobe, Salesforce, ServiceNow, Workday) have been battered by the narrative that AI (Anthropic/Vibe Coding) will make them obsolete. However, Workday and Salesforce recently rallied despite reporting "disappointing" or "not great" quarters. When stocks rally on bad news, it indicates the negative sentiment is fully priced in. The fear that AI will "wipe out" these firms is receding, or at least the Department of War's break with Anthropic suggests AI disruptors aren't invincible. Long these "Big Four" names as they U-turn from the AI-death narrative. Re-acceleration of AI capabilities that genuinely threaten seat-based software licensing models.
Boeing stock is falling despite record orders, driven by fears that Middle East conflict will crush travel demand and halt plane orders. Cramer argues this selling is "shortsighted." The backlog is real, and the geopolitical fear is temporary noise masking a strong cycle for aerospace. "Boeing should be bought, plain and simple." Escalation of war leading to a global travel ban or internal execution issues at Boeing.
Carrier is undergoing a major transformation under CEO Dave Gitlin and the stock is currently trading at a valuation Cramer describes as "cheap." The company is positioning itself to "fire on all cylinders in 2026." The low valuation provides a safety margin for entry before the transformation is fully recognized by the market. Buy for the valuation and turnaround story. Cyclical downturn in construction/HVAC demand.
Jim Cramer
Host, Mad Money
US memory and storage stocks (Micron, Seagate, Western Digital) were "crushed" in sympathy with a massive crash in South Korean tech giants Samsung (-9.88%) and SK Hynix (-11.5%). The selloff in Korea was likely driven by margin calls, forcing liquidation of US holdings. Cramer explicitly states there is "nothing fundamentally wrong with the memory and data stage." Buying the dip on US memory stocks is a play on the "margin call theory"—the price drop is technical contagion, not a structural business failure. Continued liquidation in Asian markets or a genuine slowdown in memory chip pricing.
Jim Cramer
Host, Mad Money
Target rallied 6.75% after welcoming a new CEO, defying expectations that it would be shorted due to rising oil prices (which usually hurt consumer discretionary spend). The market expected Target to be "hobbled" by the macro environment, but the strong reaction to leadership change and earnings suggests the stock was oversold. The stock is a winner based on company performance, decoupling from the war/oil narrative. Sustained high oil prices eventually crushing the consumer wallet.
