Cramer: Chips Booming — Autos, Too?
Web Editor, "Mad Money"
Buy Cadence Design Systems, Cramer said during Thursday’s Stop Trading!, as a play on the booming chip industry.
Linear Technology said that increased demand is forcing the company to make new semiconductor equipment, which will require the engineer and design automation software and hardware made by Cadence . This need to generate new supply, Cramer said, is sign that business is going “full bore.”
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“I don’t think people realize the power of the semiconductor cycle,” he said.
Elsewhere in the market, PPG Industries noted a ramp in autos production, and not one linked to the federal Cash for Clunkers program. Cramer urged investor to recognize that there is demand in the pipeline for autos, and said that Johnson Controls was the play on it.
“People should get a little more bullish about that industry,” Cramer said.
Cramer's charitable trust owns Johnson Controls and PPG Industries.
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