The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday.Marketsread more
Trump said oil would be released if needed to keep the market well supplied and he would expedite the approval of pipelines in Texas and other states.Marketsread more
Saudi Aramco is aiming to restore by Monday about a third of its crude output that was disrupted after drone attacks on two key oil facilities, The Wall Street Journal...Marketsread more
Apple's new iPhones can still send texts, download apps, and make video calls, but the company spends a lot of time and effort marketing its new phones as powerful photography...Technologyread more
Some U.S. manufacturers say tariffs, if targeted, will help address longstanding unfair trade practices like intellectual property theft.Traderead more
Supporters of a $15 minimum wage ballot initiative in Florida argue the state's inflation-tied pay hikes have not gone far enough.2020 Electionsread more
Saudi Arabia shut down half its oil production Saturday after drone strikes hit the world's largest oil processing facility in an attack claimed by Yemen's Houthi rebels.Politicsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
The stocks of Western Digital and Micron have been dragging on the semiconductor space, logging double-digit declines since their early 2018 highs, so CNBC's felt he needed to investigate the weakness.
"The semiconductor space is important," the "Mad Money" host said on Wednesday. "Chips are in nearly everything these days and they need to be ordered early in the production process, so a downturn in the semis is often a leading indicator for the broader economy."
Western Digital, formerly a pure play on hard drives, got into the semiconductor industry after its 2016 acquisition of chipmaker Sandisk. It specializes in NAND chips, a type of flash semiconductor used for data storage.
Micron deals in two types of chips, flash and dynamic random-access memory, or DRAM, chips, which end up in various electronic devices including computers.
Both companies are commodity chipmakers, meaning there's little that differentiates their products from mass-market equivalents, Cramer explained.
"They're not like Nvidia or AMD or Intel, where each product is protected by a wall of patents," he said. "Theoretically, if you want to get into the flash memory business, all you really need is enough money to build a fab — that's industry speak for a semiconductor factory."
That's why so many investors consider flash and DRAM chips to be a boom-and-bust business. When demand increases, pricing booms and Western Digital and Micron make fortunes. But as new capacity enters the market and supply increases, prices break down.
But Cramer argued that there is "a fundamental difference" between Western Digital and Micron. Western Digital's business is largely driven by NAND flash sales, whereas the majority of Micron's business comes from DRAMs, an entirely different market.
"When you look at the breakdown in Western Digital, it makes perfect sense to me," Cramer said, referencing analysts' 2017 predictions that figured flash chips would see "serious pricing pressure" by late 2018 or early 2019.
"For a while, ... the pricing held up better than they'd expected. However, in March, we started hearing about large increases in NAND flash shipments," he continued. "More shipments translates into weaker pricing. And that's when Western Digital's stock started getting pummeled."
But Micron's story is different. While its business could be hurt by falling prices, the chipmaker is much more disciplined about its DRAM sales and recently introduced a $10 billion share buyback, which could boost the earnings per share.
"Going forward, I think that could be the real difference between Micron and Western Digital," Cramer said. "When Micron's stock goes down, the company will be in there buying it hand over fist with you. When Western Digital's stock goes down, it just goes down."
So while he admitted that the pain wasn't necessarily over, Cramer was intrigued by the stock of Micron, which he said would get cheaper as long as Wall Street continued to snub the company.
"These commodity semiconductor [stock]s, they've been in the house of pain, and I wouldn't touch Western Digital, even down here," he said. "As for Micron, I think this is the kind of stock that actually gets cheaper on the way down, especially since the company's doing better than you'd believe and management's repurchasing a massive number of shares. I'm not saying it can rebound overnight, but I do think Micron is worth buying here."
Micron's stock ended Wednesday's trading session lower, down 1.33 percent at $45.15 a share. Shares of Western Digital rose slightly into the close, settling up 1.11 percent at $58.36.
Disclosure: Cramer's charitable trust owns shares of Nvidia.