Have the semiconductor stocks bottomed?
“There are a bunch of reasons to think the future's looking brighter for the semiconductor space,” Cramer said. “The stocks are cheap, chip inventories are low and all these companies are facing easy comparisons versus last year's awful results.”
In 2011, estimates for the sector were slashed by 30 percent and the entire cohort lagged the S&P 500 index by 12 percent. Since the beginning of 2012, though, the chipmakers group has rose by 8 percent.
For those interested in bottom fishing, Cramer recommends “best of breed” names, like Broadcom . The Irvine, Calif.-based company designs connectivity chips that integrate multiple communication standards (think Bluetooth, GPS and WiFi) into a single chip for networking equipment. It also designs broadband gear, like cable modems, and mobile devices, which account for nearly 50 percent of its sales. These end-markets are expected to grow at a 15 percent clip for the foreseen future.
Cramer thinks this stock is “dirt cheap,” selling for just 11.7 times forward earnings estimates with a 15 percent growth rate. It also pays a modest dividend of around 1 percent, but hey, it’s something.
“I say buy yourself some Broadcom,” Cramer said. “It's super cheap, the earnings have bottomed and are ready to rebound and the company has a ton of exposure to the parts of tech that are still working, secular growth themes like the mobile internet tsunami and the cloud .”
Read on for the Mad Money Mobile Internet Index
When this story was published, Cramer's charitable trust owned Broadcom.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com