Jim Cramer: AMD Is A 'Great' Company, Hold Onto Dow Inc.

Tech Stocks In Focus

On CNBC's “Mad Money Lightning Round,” Jim Cramer said Rigetti Computing, Inc. RGTI is a quantum stock. “If you want to participate in a short squeeze, this is better than most,” he added.

Shares of quantum stocks, including Rigetti Computing, rose sharply on Tuesday amid strength in tech and AI stocks as investors assessed the new administration’s policies and AI efforts.

Cramer recommended buying ASML Holding N.V. ASML, adding that it is a “remarkably great” company.

Supporting his view, Wells Fargo analyst Joseph Quatrochi, on Jan. 13, maintained ASML with an Overweight and raised the price target from $790 to $860.

Advanced Micro Devices AMD is a “great” company, Cramer said. “I do think that there's a lot of people who believe that they will not be able to deliver on this quarter. I, therefore, am reluctant to get in ahead of the quarter.”

AMD will report fiscal fourth quarter and full year 2024 financial results after the closing bell on Tuesday, Feb. 4. Analysts expect the company to report quarterly earnings at $1.09 per share, up from 77 cents per share in the year-ago period.

Hold On To This Stock

The “Mad Money” host recommended to hold on to Dow Inc. DOW. “I don't want to sell it here, we might be at some sort of trough at this very moment in Dow pricing,” he added.

Recently, on Jan. 13, Morgan Stanley analyst Vincent Andrews also maintained Dow with an Equal-Weight rating and cut the price target from $59 to $46.

Discusses His View On Health Care Stocks

Cramer said Elanco Animal Health Incorporated ELAN is not his favorite and considers Chewy CHWY as the better bet for this group.

Adding support to Cramer's view, Stifel analyst Jonathan Block, on Jan. 7, lowered the price target on the stock from $20 to $18.

Clover Health Investments, Corp. CLOV is losing a lot of money and is “just a total spec,” Cramer said.

On Nov. 6, Clover Health Investments reported worse-than-expected third-quarter revenue results.

Price Action:

• Rigetti Computing shares jumped 42.2% to settle at $13.98 on Tuesday.
• ASML shares gained 0.9% to close at $763.00 during the session.
• AMD shares gained 0.7% to close at $122.28.
• Dow shares gained 1.3% to settle at $41.58 on Tuesday.
• Elanco Animal Health shares gained 0.2% to close at $12.04.
• Clover Health Investments shares rose 3.9% to settle at $4.24 on Tuesday.

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• Jim Cramer: This Tech Stock Is A Buy, Louisiana-Pacific Has Been A ‘Great Stock’

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