Lam Research (LRCX) been down in a straight line since it reported an excellent quarter and the reason why it's going down aside from Citi's (C) downgrade is that they make the machines you need to make all different kinds of chips. And there might be a coming glut of chips which could mean cancellations for the kinds of machines that Lam makes.  

Watch all of Jim Cramer's latest videos, right here:

More from Video

The Final Barrier for One Last Bull Market High

The Final Barrier for One Last Bull Market High

Market Movers: December FOMC Meeting

Market Movers: December FOMC Meeting

Potential Global Market Impacts After the Arrest of Huawei's CFO

Potential Global Market Impacts After the Arrest of Huawei's CFO

Jim Cramer Weighs in on Dave & Buster's Earnings and What It Means for the Mall

Jim Cramer Weighs in on Dave & Buster's Earnings and What It Means for the Mall

Amazon Representative Addresses the Economic Impact of HQ2 on New York City

Amazon Representative Addresses the Economic Impact of HQ2 on New York City