Cramer: This Semiconductor Stock Likely Bottomed

It's been tough to own semiconductor stocks lately.

Take for example, Cypress - shares have dropped almost 50% over the course of one year.

Cypress makes small, low-power semiconductors that are used in mobile phones and tablets. They also makes chips that power touchscreens.

"They also have controller chips that help smartphones communicate with computers more directly, and they're also the number one manufacturer of a more expensive type of memory chip called SRAM or static random access memory—this isn't really a growth business, but is real a cash cow for Cypress," said Cramer.

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If you've owned the stock long-term, you're probably not happy. But that may change.

New data released this week suggests the business may be about to turn.

Cypress reported slightly better than expected results—and they did so, after they'd already preannounced to the downside.

"More important, Cypress expects that the current semiconductor slump will bottom in the first quarter—where we are right now," said Cramer. "And after that they anticipate revenue growth something that could drive this stock higher again."

Although these are admittedly early signs, Cramer likes the risk/reward.

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"The stock is trading a little below $10 a share, and at these levels it sports a bountiful 4.4% yield, so you're being paid handsomely to wait for the turn to happen," Cramer said.

"Plus, the global economy is looking a whole lot better and just yesterday we heard some very positive things from Avnet, the world's biggest supermarket of tech, including semiconductors," he said.

That's not to say there aren't risks. "Cash is being burned down," said Cramer.

However, taken in tandem Cramer thinks all these catalysts are promising. "I think we could be looking at a genuine bottom," he said. "I'd look at this as a call option."

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