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Jim Cramer backs Lam, KLA, and Applied Materials in semiconductor equipment bet
The CNBC host framed the trio as beneficiaries of a data center memory bottleneck and argued their equipment makers have steadier demand as fabs expand.
On CNBCs Mad Money, Jim Cramer said the data center memory industry is facing a shortage and urged investors to focus on the companies that build fabrication machinery rather than the memory itself. Cramer argued that owning semiconductor capital equipment makers can be a steadier way to participate in memory demand, given what he described as consistent demand drivers and strong financial positioning.
Cramer named Lam Research Corporation, KLA Corporation, and Applied Materials as what he called the semiconductor equipment troika. He said demand worries are lower for the machine builders than for downstream memory suppliers, and he described the three firms as consistently valuable across the semiconductor supply chain.
He also said it is difficult to select a single winner among the three because each company has strong leadership. Cramer pointed to personal and leadership factors, including his connection to Lam through Rick Hill, the retired CEO of Novellus, which sold itself to Lam Research, and he noted Applied Materials CEO Gary Dickerson as the most vocal champion of the group.
While Cramer did not pick one definitive favorite, he characterized the troika as a core part of American technology, saying the companies underpin the production of semiconductors and are a competitive edge versus other countries pursuing chip manufacturing.