Shares of Lam Research took a beating on Thursday, falling more than 2 percent. However, Lam reported a better than expected quarter, and company gave much stronger than expected guidance for next quarter. Additionally, analysts raised both earnings estimates and price targets.
Cramer speculated that investors sold the stock because the company admitted that shipments in the second half of its 2017 fiscal year could be weaker than the first half. Or perhaps because the company is spending more than ever, even though much of the money went to paying down debt and buying back stock.
The most important factor to consider, Cramer said, is that the stock ran into the quarter, and this could simply be investors ringing the register. He spoke with Lam's CEO Martin Anstice, who commented on the long-term cycle for the use of flash and DRAMs.
"It's difficult today to have a conversation about a cycle because I think to a point you make regularly, this is a world of diversity in terms of ends, demands and it is a world of secular trends. And I very much believe in the long-term opportunity for Lam Research," Anstice said.
Shares of ServiceNow rose more than 3 percent on Thursday, after the company reported a strong quarter—including a significant 52 percent increase in subscription billings.
ServiceNow CEO Frank Slootman told Cramer this is the result of a successful platform strategy that he has worked on for many years, and all of the pieces of the puzzle have finally fallen into place.
The fourth quarter "was a special quarter for us. Everything went right, and you are seeing the results of that," Slootman said.
In the Lightning Round, Cramer gave his take on a few stocks from callers:
BP: "No. Tomorrow morning Chevron reports. If you want one of those big majors, I'm going to say you probably want to go with Chevron. Let's see how they do after the call."
Coherent: "Look, the semiconductor test in measurement and laser businesses are so strong, you could have mentioned Teradyne, a company that I didn't like that had an unbelievable quarter last night. You're in a good one. You're in a good sweet spot of the semiconductor cycle."