Jim Cramer's Top Takeaways: Micron Technology, Advanced Micro Devices, GTT Communications

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways.

Cramer thinks Micron Technology (MU) should buy Advanced Micro Devices (AMD)  . Here's why. 

The wave of consolidation in the semiconductor space is far from over, Cramer told viewers, as he donned his investment banking matchmaker hat to predict the next perfect marriage in the space. He said that the $21 billion maker of memory chips known as Micron Technology would see huge positives from acquiring Advanced Micro Devices, makers of processors and high-end graphics chips.

After being in the doldrums last year, as PC sales slumped, this year shares of both companies have recovered, with Micron up 50% for the year and AMD roaring up 280%.

In the semiconductor world, diversification is king, Cramer explained, and diversification has been the driver behind just about all of the megamergers we've seen so far. In a market that tends to be boom or bust, diversifying offers protection and steady growth.

Micron is still largely a commodity maker of memory chips, Cramer noted, thus the acquisition of the faster-growing and proprietary chips of AMD would be a big win for both companies. Micron currently has $4.5 billion in cash, making a $10 billion deal with AMD a definite possibility.

Read more about which companies Cramer thinks will be the 10 Top Takeout Candidates of 2017.

Action Alerts PLUS: Cramer and Jack Mohr are trimming Occidental (OXY) and recommending their investment club members buy Adobe (ADBE) . Find out why with a free subscription.

GTT Communications (GTT) : Looking for one of the best performing companies you've never heard of? Look no further than GTT Communications.

Cramer said that GTT helps businesses connect directly to the cloud by bypassing the temperamental Internet you use in favor of its own secure and reliable network. GTT is one of only a few global Tier 1 networks that can provide such access.

Unlike other carriers, GTT leases most of its infrastructure, which means it spends less than 3% of earnings on capital expenditures. Additionally, most of the company's revenues are recurring and subscription-based, which makes them predictable and reliable.

Shares of GTT trade at a lofty 97 times earnings when compared to, say, 13 times for Verizon. But Cramer said that when you factor in the company's 25% growth rate, investors are paying less than 25 times earnings in the out years for a fantastic company.

Real Money: Oracle's earnings are messier than they appear, says Eric Jhonsa.

To read a full recap of "Mad Money" on CNBC, click here.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had positions in OXY and ADBE.

More from Stocks

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Nutrisystem Soars on Deal to Be Acquired by Tivity Health

Nutrisystem Soars on Deal to Be Acquired by Tivity Health

Apple Stock Overcomes Trade Troubles to Post Gain on Monday

Apple Stock Overcomes Trade Troubles to Post Gain on Monday

Economist Perspective: Can U.S. Dollar Keep Its Momentum in 2019?

Economist Perspective: Can U.S. Dollar Keep Its Momentum in 2019?

Stocks End Day in the Green as Dow, S&P Overcome Slow Starts

Stocks End Day in the Green as Dow, S&P Overcome Slow Starts