You Need These Companies, Says Jim Cramer About Applied Materials (AMAT)

We recently published 12 Latest Stocks on Jim Cramer's Radar . Applied Materials Inc (NASDAQ:AMAT) is one of the stocks Jim Cramer recently discussed.

Applied Materials Inc (NASDAQ:AMAT) is a key company in the semiconductor supply chain, as its machines enable chip manufacturers throughout the production process. Cramer discussed the firm’s role in the evolving high-bandwidth memory industry. HBM chips are just as important as AI GPUs since they enable computers to store and transfer data at high speeds to the main chip. Cramer believes that even though Applied Materials Inc (NASDAQ:AMAT)’s shares have gained 43% year-to-date, high HBM demand could prove beneficial for the shares:

“Of those, I think the one that is very exciting to me, uh, is AMAT. When you look at say, uh, let’s say you do . . .AMAT. These were companies, no one thought there would be such a huge rush to have most high bandwidth memory. . . And that’s these companies. You need them. So I think that AMAT’s going to be absolutely, I think it could be terrific, even from these levels.”

While we acknowledge the potential of AMAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.