Wall Street rallied sharply Tuesday, snapping a three-day losing streak, and CNBC’s Jim Cramer believes the quarterly results from Micron Technology played a part in changing market sentiment — at least for one session.
Micron, which makes memory chips that are used in data centers, PCs, smartphones and vehicles, reported better-than-expected quarterly revenue and earnings after Monday’s close. Its stock jumped 10.5% Tuesday, as investors cheered those results and its upbeat forward guidance.
“In this business, you need truth telling tentacles, and Micron is the one that has almost all of them,” Cramer said. For example, Micron CEO Sanjay Mehrotra touted the strength of the company’s data center business.
“And when data centers are booming, then you know what that means. It’s time to buy AMD, Nvidia and [Marvell Technology], the latter of which just reported a big number and is way down from its highs,” Cramer said.
Mehrotra’s optimistic 2022 outlook on the non-memory chip shortage alleviated some fears on the Street surrounding the auto sector, Cramer said, after the industry was forced to limit vehicle production in recent months.
“Of course, most investors just care about Apple … not its suppliers,” Cramer said. “My goal, though, is to show you how far-reaching Micron is that it could practically carry the whole market on its back,” particularly mega-cap tech stocks.
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Disclosure: Cramer’s charitable trust owns shares of Nvidia, Amazon, Marvell Technology, AMD, Broadcom, Alphabet, Microsoft and Ford Motor.