Micron’s strong quarter lifted the entire market on Tuesday

Wall Street rose sharply on Tuesday, taking a three-day losing streak, and CNBC’s Jim Cramer believes that the quarterly results from Micron Technology played a role in changing market sentiment – at least for one session.

“Because Micron is involved in everything, the positive pin action lifted lots of stocks,” including tech giants like Amazon and automakers like Ford Motor, the “Mad Money” host said.

Micron, which makes memory chips used in data centers, PCs, smartphones and vehicles, reported better-than-expected quarterly earnings and earnings after Monday̵[ads1]7;s closing time. The stock jumped 10.5% on Tuesday, as investors cheered on these results and the positive guidance ahead.

“In this industry, you need truthful tentacles, and Micron is the one who has almost everyone,” Cramer said. Micron CEO Sanjay Mehrotra, for example, mentioned the strength of the company’s data center business.

“This is great news for Amazon Web Services, for Microsoft’s Azure, for [Alphabet’s] Google Cloud and even IBM, “said Cramer.” Each of these companies saw their shares close on Green Tuesday.

“And when data centers are booming, then you know what that means. It’s time to buy AMD, Nvidia and [Marvell Technology]”where the latter just reported a large number and are far down from their heights,” said Cramer.

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Mehrotra’s optimistic 2022 outlook for the lack of non-memory chips eased some fears on the streets around the automotive sector, Cramer said, after the industry was forced to limit vehicle production in recent months.

And the company’s positive comment on the smartphone business also signals strength for iPhone maker Apple, as well as semiconductor companies Skyworks Solutions, Broadcom and Xilinx, Cramer said.

“Of course, most investors only care about Apple … not the suppliers,” Cramer said. “However, my goal is to show you how far-reaching Micron is that it can carry practically the entire market on its back,” especially megacap technology stocks.

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Disclosure: Cramer’s charitable trust owns shares in Nvidia, Amazon, Marvell Technology, AMD, Broadcom, Alphabet, Microsoft and Ford Motor.

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