On Tuesday, Jim Cramer shared his latest semiconductor picks, singling out Micron Technology Inc. (NASDAQ:MU), Applied Materials Inc. (NASDAQ:AMAT) and either Intel Corp. (NASDAQ:INTC) or Advanced Micro Devices Inc. (NASDAQ:AMD) as his top choices if investors had to own stocks across the semiconductor “food chain.”
Cramer Names His Favorite Chip Stocks After Tech Pullback
Taking to X, Cramer wrote, “OK, IF you have to, lets go with Micron, AMAT and Intel/AMD for the ones I like the best….for this part of the food chain.”
In a separate post, he also pointed to Super Micro Computer Inc. (NASDAQ:SMCI) as another company worth watching because of its close ties to Nvidia Corp’s (NASDAQ:NVDA) AI ecosystem.
“Supermicro great for Nvidia if you are counting,” he said.
The comments came a day after Cramer urged investors to reduce oversized technology positions, warning that the AI trade had become increasingly volatile despite maintaining his long-term bullish stance on companies including Nvidia and Intel.
Market Strategist Says AI Selloff Looks Like a Normal Correction
The latest pullback in technology stocks followed months of sharp gains that pushed valuations higher, prompting many investors to lock in profits.
Freedom Capital Markets chief market strategist Jay Woods said the decline was not unexpected, arguing that stock prices had moved too far ahead of their longer-term trends.
“The moving averages always come back to play. We had noted that they had gotten too far ahead of themselves and investors should book profits,” Woods said in a weekly newsletter.
Using Micron as an example, Woods said stocks can either trade sideways while moving averages catch up or decline toward those levels, adding that “last week we got the price correction.”
He described the selloff as “violent” but stressed that the underlying fundamentals for AI and technology companies remain intact.
According to Benzinga Edge Rankings, Intel ranks in the 99th percentile for Momentum, reflecting strong medium- and long-term price performance despite recent short-term weakness.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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