Cramer urges measured approach to Applied Materials after share decline
The Mad Money host suggested buying a small position while keeping cash available if the semiconductor equipment maker falls another 10 per cent.
Jim Cramer has advised Applied Materials investors to focus on the company’s future prospects rather than the prices at which they previously bought the shares.
Responding on 1 September to a caller who had purchased Applied Materials at $540 and $490, Cramer suggested adding a small amount after the decline while retaining cash for a possible further 10 per cent fall. He did not specify a purchase size or a relevant current share price.
Applied Materials supplies semiconductor manufacturing equipment, including deposition, etch and inspection systems used in chip production. Its business remains cyclical, leaving the company exposed to pauses in fab spending, weaker customer orders, market volatility and export restrictions.
Yahoo Finance’s report said the stock was about $300 below its high at the time, without identifying the high or providing independently verified price data. Cramer’s comments were personal market commentary rather than a forecast or advice suitable for all investors.
The report, citing Insider Monkey’s database, said 137 hedge funds held Applied Materials in the second quarter, compared with 138 in the previous quarter. Coatue Management was identified as the largest cited holder, with more than 4.2 million shares, while short interest was reported at 1.50 per cent of the float. Those figures were not independently verified.
