Cypress Semi's Hidden Gem

These days, owning tech stocks is not for the faint of heart – especially the semiconductor names. But how about a semi that has good fundamentals and a hidden asset that makes it far more valuable than any of its competitors?

Cramer found just that in Cypress Semiconductor . CEO Dr. T.J. Rodgers told him on Tuesday’s show that, contrary to what many others are seeing, Cypress is not getting hit by the ripple effect from a slowdown in consumer spending. He said the company’s chip sales are strong and the consumer is “where it’s at.”

Good news no doubt, but Cypress’ real value is hidden in its 53% ownership of solar panel maker SunPower , one of the two solar stocks Cramer has recommended routinely in the Lightning Round.

Rodgers said that Cypress anticipates distributing SunPower to its shareholders “in some manner” by the time tax restrictions expire in November 2009.

But until then, Cramer thinks Cypress is the best and cheapest way to invest in SunPower and the red-hot solar industry. And it’s a buy on the strength of its core business of silicon-based chips, too, he said.

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