Investors shouldn't wait for "ironclad proof" that business is improving at Micron, Nvidia and Lam Research before they buy the semiconductor companies' stocks, CNBC's Jim Cramer said Wednesday as stocks inched higher.
"If you wait for ironclad proof that a troubled business has turned itself around, you'll miss most of the upside from that turn," he said on "Mad Money" after all three chip stocks surged. "The next time stocks drop, I need you to think about this group. It's bottomed, and the rally? It's just beginning."
In Wednesday's session, Micron climbed 5.04 percent, Nvidia rose 1.97 percent and Lam Research gained 5.16 percent. While the semiconductor industry has been under pressure in recent months due to supply-demand imbalances, the rallies encouraged Cramer that the worst could soon be over.
"This rally is about a turn in the second half," he said. "If you believe the trade war will simmer down, if you believe Fed Chief Jay Powell will hold off on raising interest rates — that he'll make decisions based on the actual data like he told us last week — then the worldwide economic expansion can restart, and basic building blocks like Micron's chips can make a comeback in pricing."
Click here to read more.