When Jim Cramer starts to see stocks moving with no promotion whatsoever, he considers it to be a gift. That is exactly what is happening right now with the semiconductor stocks. They're making major breakout moves for absolutely no reason. No news, no data points, no analyst pushes — nothing!
"That kind of spontaneous combustion is the sort of thing I used to look for at my old hedge fund because I would sense that the analysts would see the action and then find reasons to recommend these stocks once they figured out something positive to say," the "Mad Money" host said.
One stock that has been quietly rallying is Intel. Though it has been totally off the radar, Cramer still thinks it is worth considering. Intel's stock has dropped due to its connection to the secular decline in personal computers.
But that challenge is much worse for a company like HP Inc. that actually makes computers, as opposed to Intel which just makes the processors inside. More importantly, Altera, the high-end semiconductor company, will soon become part of the Intel family and give the company a less-PC oriented and a more high growth profile.
"I think Intel will be a changed story, and its stock will get 're-rated,' meaning that analysts are going to rally behind this one because it is no longer a one-trick pony," Cramer said.
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Even semiconductor stocks that have been in the dog house for ages have started to wake up from their nightmarish slides. Avago, NXP Semi, Skyworks Solutions and Qorvo were all once market darlings when cellphones were considered growth vehicles, but the market turned on them once cellphones started to become a saturated category.
Avago will soon close on its acquisition of Broadcom, and NXP is finishing its purchase of Freescale. Cramer thinks this will give analysts a good reason to push both stocks, and Qorvo and Skyworks will be swept along for the ride.
Other stocks on Cramer's radar are Lam Research, Cirrus Logic, Cypress Semi and Xilinx. However, he warned to steer clear of Micron and Qualcomm.
"Semiconductor stocks are back, and they can be a real leadership group. Bet with them, not against them, and I think you will do just fine into the end of the year," Cramer said.