The strong demand for Apple 's latest iPhones is good news for several chip companies, and investors should take advantage, CNBC's Jim Cramer said Wednesday. The tech hardware giant is pushing suppliers to raise production of its next generation iPhones by 20% , according to Bloomberg News. JPMorgan also added the stock to its focus list on Wednesday , in part due to supply chain improvements and strong smartphone demand. Apple rose about 2% on Wednesday, hitting another all-time high, and the stock has now gained roughly 14% over the past month. Cramer said on " Squawk Box " the Apple news showed that the company had a robust pipeline that could create upside for chip stocks that are a key part of the tech supply chain. "People must have known that the orders were coming through. Let's just understand. You want to buy Liam Griffin's company - you want to buy Skyworks ," Cramer said. Griffin is CEO of Skyworks. "And you want to go back to Hock Tan. You can buy Broadcom now that he's not buying the SAS Institute," Cramer added, referencing reports that Broadcom had backed away from deal talks with a software company. Tan is CEO of Broadcom. The launch of 2020's iPhone 12 was seen by some analysts as the start of a " super cycle " for Apple, but that meant that future models could demand tail off. The bullish reports on suppliers suggests that demand remains strong well after the iPhone 12 hit the market. Skyworks was up more than 1% in midday trading on Wednesday, while Broadcom was down slightly. The "Mad Money" host also mentioned Qorvo as a potential beneficiary. Those stocks have been stuck in neutral recently, all rising less than 2% over the past three months. Many chip companies have struggled with production issues this year as new waves of the pandemic have disrupted factories in Asia.
Scott Mlyn | CNBC
The strong demand for Apple's latest iPhones is good news for several chip companies, and investors should take advantage, CNBC's Jim Cramer said Wednesday.