Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report is headed for its sixth straight record close, joining other chipmakers in an extended rally as the industry shortage continues to boost their finances.
AMD recently traded at $119.45, up 6%. It has leaped 23% in the past five trading sessions.
The Philadelphia Stock Exchange Semiconductor Index (SOX) hit a record 3,450 and recently stood 1% higher.
Rosenblatt Securities lifted its Nvidia target price Wednesday to $250 from $200, affirming a buy rating. The move stemmed from the company’s long-term earnings potential, Rosenblatt said, according to Bloomberg.
"AMD has the possibility to pull away from Intel in a way that Intel is going to have a hard time catching up," Cramer told Action Alerts PLUS senior analyst Jeff Marks.
Intel recently traded at $53.80, down 0.5%.
Also last month AMD secured approval from European Union antitrust regulators for its $35 billion bid for fellow chipmaker Xilinx (XLNX) - Get Xilinx, Inc. (XLNX) Report. The European Commission said it didn’t find any antitrust issues with the deal.
As for Nvidia, on Wednesday Bloomberg reported that an assessment of its proposed $40 billion acquisition of Arm Holdings contains worrying implications for national security and that the U.K. is inclined to reject the takeover.
While Cramer said he wants the deal to go through, he said no matter the result, Nvidia will come away with a win.