Shares of Cisco Systems (CSCO - Get Report) closed down about 2% on Thursday, Aug. 18, and closed Friday trading down 2.16% to $30.37 after the company beat on revenue and reported in-line earnings results amid a 4% year-over-year sales drop.
There was a different note TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, picked up on, though. Speaking on CNBC's "Stop Trading" segment, Cramer pointed out that CFO Kelly Kramer said DRAM prices aren't going down.
Rising DRAM prices show that demand is still strong, and this vital input cost hurt Cisco's gross margins, Cramer noted. However, strong demand and rising DRAM prices is good for companies like Micron Technology Inc (MU - Get Report) and Lam Research Corporation (LRCX - Get Report) .
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"DRAMs are so, so key" to companies like Cisco and HP Inc (HPQ - Get Report) , he added. Cramer easily could have said prices were heading lower, which would help CSCO stock, but she's too honest for that. DRAM pricing seems to be trending higher, Cramer said.
"If that's the case, Micron's a buy...Lam Research is a buy," he concluded.
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