And the chipmaker's dramatic resurgence in 2019 is due in no small part to CEO Tim Archer, who took over Lam last December, Jim Cramer told members of his Action Alerts PLUS investment club in an exclusive members-only call.
When Archer took over the chipmaker late last year, many market observers were predicting the then-reeling semiconductor industry surely was headed for new lows.
But Archer bucked conventional market wisdom and started not just to buy back Lam stock, but to aggressively buy it back, Cramer noted.
"Boy, did he ever do so," Cramer said.
"The result? Shareholders caught a 100-point gain, of which I am happy to say we got a great deal of," Cramer told AAP club members.
How did Wall Street get things so wrong?
The market "refused to believe that a company and its CEO knew more than the analysts did," Cramer said.
By contrast, Archer knew the cycle and had learned a key lesson from his old boss - high-powered tech executive Rick Hill - that "when the cycle looks most hideous, buy back stock and buy back aggressively," Cramer said.
The new Lam CEO clearly remembered Hill's injunction that "the cycle bottoms when orders are cut back" because "that's exactly when Archer struck," Cramer observed.
"Buy it when nobody else wants it if you believe in yourself and your product," Cramer said, citing Hill's investment philosophy.
Catch all the stocks Cramer is watching into the new year in his exclusive Action Alerts PLUS investing call.