Jim Cramer has some thoughts on semiconductors after the back and forth about the possibility of a U.S.-China trade deal.
On Tuesday, President Donald Trump told reporters in London that a U.S.-China trade agreement may have to wait until after next year's presidential elections.
Speaking to the media during a three-day visit to the British capital, Trump said he had no deadline in mind for a U.S.-China trade pact, adding that it would "probably be better" to wait until the end of the 2020 elections to finalize an agreement, adding any accord would be "dependent on whether I want it."
"In some ways I think it's better to wait until after the elections to deal with China, to tell you the truth," Trump said. "In some ways, I think it would be better."
And then, on Wednesday morning, Bloomberg News reported that U.S. negotiators expect a phase-one deal with China to be completed before American tariffs are set to rise on Dec. 15. Trump's comments were not intended to say the talks were stalling, Bloomberg said, citing anonymous sources, as he was "speaking off the cuff."
So, what does Cramer think?
"President [Donald Trump] says that [trade] talks may be going well. That means buy semiconductors. That's what happens. So they buy Nvidia (NVDA) - Get Report, Microchip (MCHP) - Get Reportreported a decent number. They should be buying Marvell (MRVL) - Get Report. We'll talk about that over on Action Alerts [PLUS], buy Texas Instruments (TXNL) . I mean this is just the time-honored...This is what we buy...It used to be the industrials. No one seems to be doing that anymore. Now, just so you know, my issue with this is that the President has a habit of saying publicly that things are going well, and then has a habit of having the hard-liners then speak to say it's not going well," said Cramer.