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Morning Bell With Jim Cramer: Nvidia, Semis Not So Cyclical

TheStreet's Jim Cramer shares his thoughts on Nvidia and other semiconductor companies.

Stock futures traded higher Tuesday, indicating Wall Street will claw back some losses from Monday's selloff as investors turned their attention to a slew of earnings reports.

TheStreet's Jim Cramer discussed the semiconductor sector with with Action Alerts PLUS senior analyst Jeff Marks.

Nvidia  (NVDA) - Get Report shares were moving higher as the chipmaker prepared to begin trading on a split-adjusted basis. 

The shares also rose 15% on Monday while many of its competitors fell in Monday's market swoon.

Cramer: 'Pick One and Buy Some Right Here'

In his recent Real Money column, Cramer said "there is tremendous demand for these chips but Wall Street got too bulled up."

He added that "I think that you pick one and buy some right here."

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"The semis go up as long as there's tightness," Cramer told Marks, "and then the semis start going down where there’s equilibrium, not when prices fall. Equilibrium is a predictor of prices."

Many investors are selling Micron Technology  (MU) - Get Report and Advanced Micro Devices  (AMD) - Get Report, Cramer said, "and they’re not even thinking about the idea that maybe these stocks aren't as cyclical as we think and that there’s tremendous demand for them out of sync with the economy."

"I do think that AMD and Nvidia have very little to do with the economy and much more to do with high-performance computing," he said, "which is in evidence, obviously, with social media. You have to have high-performance computing."

Cramer advised "taking a hard look at some of the stocks that are down."

"I'm not saying you have to buy Cisco  (CSCO) - Get Report," he said, "Cisco's not down a lot. Salesforce  (CRM) - Get Report just had a big run. ... You want to look to see if the stocks [have] been straight down, and then you do some buying."

AMD, Cisco, Nvidia and Salesforce are holdings in Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.