Amazon hires Trump-allied lobbyist Jeff Miller as battle for Pentagon contract heats up.Politicsread more
In a series of tweets, the president addressed an unusual controversy stemming from a speech delivered Thursday by New York Fed President John Williams.Marketsread more
Companies aren't waiting for the U.S.-China trade war to be resolved, says the head of the world's biggest money manager.Investingread more
Iran's Revolutionary Guard says it seized a British tanker in the Strait of Hormuz, claiming it failed to follow international marine regulations.World Newsread more
More than a quarter of the S&P 500 companies report earnings in the week ahead, and that could buffet the market as investors await the Fed's meeting at the end of the month.Market Insiderread more
Executives from United Airlines and American Airlines were "shocked" that state-owned airline Qatar Airways CEO Akbar Al Baker was also invited to the meeting, according to a...Airlinesread more
Walmart is making further organizational changes as it continues to integrate its store and digital operations and leadership, according to a memo obtained by CNBC that was...Retailread more
George Nader helped arrange a January 2017 meeting in the Seychelles between Erik Prince and the head of Russia's sovereign wealth fund, who reported directly to Vladimir...Politicsread more
These are the stocks posting the largest moves midday.Market Insiderread more
"I'm not hearing people blame the Fed as much as they're blaming tariffs," says CNBC's Jim Cramer.US Economyread more
Earlier, Williams said in a speech that "it's better to take preventative measures than to wait for disaster to unfold."The Fedread more
The semiconductor business has been a hot 2017 play, but the segment's leaders, Advanced Micro Devices and Nvidia, have been getting hammered, so Jim Cramer took to finding out what is causing their pullback.
"The truth is, what's happening here has much less to do with the semiconductor business than it does with the ... actual business of money management — the perception of what's a bargain versus what's expensive in a portfolio manager's eyes," the "Mad Money " host said.
AMD and Nvidia both make graphic chips for gaming and have growing exposure to data centers. AMD also supplies the personal computer and virtual reality businesses, while Nvidia has ties with the connected car and artificial intelligence.
Both of the companies stock's have also soared. AMD has shot up 362 percent in a year, while Nvidia has seen a 171 percent gain. But AMD slid over 16 percent from its February highs, and Nvidia is down over 18 percent since then.
Watch the full segment here:
"If there's one thing money managers hate more than flat-out losing money on an investment, it's giving up tremendous gains," Cramer said. "After the amazing moves in Nvidia and AMD, you have to believe there were a ton of institutional investors out there who were looking for any excuse whatsoever to ring the register and take some profits."
So when a number of analysts suggested investors should sell Nvidia and Goldman Sachs slapped a "sell" rating on AMD, the stocks became hard to own and funds shed their shares.
Cramer also nodded to the rebounding popularity of cellphone-oriented chipmakers that were all but irrelevant on Wall Street until Apple began to regain its momentum.
"It's live by Apple, die by Apple," Cramer said. "Lately, ... names like Skyworks Solutions, Qorvo, Micron — although much less lately — and Broadcom have come back into vogue, and all of these stocks remain way, way cheaper than Nvidia and AMD. "
If you are nervous about owning Nvidia or AMD despite nothing being wrong with the companies themselves, Cramer suggests picking up a diversified name like Broadcom.
"I still like Broadcom, which I think has a lot more upside," Cramer said, adding that the company will soon complete its $6 billion acquisition of Brocade and has a good record of making deals.
"You have to recognize that these two winners are suffering from severe profit-taking, and that's driving cash toward cheaper stocks," Cramer concluded. "[AMD and Nvidia are] doing great, but portfolio managers want to play the Apple cycle right now, provided Apple doesn't crush its suppliers, and they're using the proceeds from their big wins in AMD and Nvidia to do just that."
Questions for Cramer?
Call Cramer: 1-800-743-CNBC
Questions, comments, suggestions for the "Mad Money" website? email@example.com