Mad Money 05/18/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer discusses the current market rotation between hardware and software stocks, advising viewers to buy winners on pullbacks. He highlights Micron as a buying opportunity based on valuation and recommends Intel and TSMC for their semiconductor exposure. In the lightning round, he endorses Devon Energy and comments on other stocks. He also warns about the disruptive impact of upcoming mega IPOs like SpaceX.
- Cramer observes frequent rotational behavior between hardware and software stocks.
- He recommends buying the largest S&P losers with strong balance sheets on down days.
- Micron is identified as a compelling hardware stock at 12x earnings.
- Intel CEO Lip Bu Tan discusses the CPU shortage, foundry progress, and advanced packaging.
- Cramer believes Intel's stock will continue to rise.
- He calls Devon Energy a plain buy due to natural gas exposure.
- TSMC is viewed as a steady performer, not a skyrocketer.
- Cramer warns that SpaceX's IPO and fast index inclusion could cause market turbulence.
Trade Ideas
Micron is cheap and oversold.
Micron (MU) trades at less than 12 times earnings while peers are much more expensive. It was down 6% today, and I've been waiting for it to come down. I believe it's the only compelling opportunity among the day's biggest losers in the S&P 500. It's a hardware stock that can most easily turn itself around on the next move higher. I am buying some here and will add on another 2-3% decline.
Intel will continue its uptrend.
Intel has engineered an incredible turnaround under CEO Lip Bu Tan. The stock went from $20 to over $100 and with the CPU shortage from agentic AI, the foundry progress, and advanced packaging demand, I think it's just going to keep going higher.
TSMC will grind higher.
TSMC is an indispensable choke point in advanced semiconductor manufacturing. It may not skyrocket, but I think it's going to go higher. Everyone in the industry speaks highly of it, and the more I look at it, the more I like it.
Devon Energy is a buy.
Devon Energy is a buy plain and simple because they have tremendous natural gas exposure, which is a U.S. strength. The stock is attractively valued and the natural gas market is favorable.
