Don’t Ignore This Market Rotation: Jim Cramer’s Views on Micron, Western Digital, and More

2. Qnity Electronics, Inc. (NYSE:Q)

Qnity Electronics, Inc. (NYSE:Q) was among the stocks Jim Cramer discussed while explaining how investors can navigate the current market rotation. Cramer noted that it is part of the Charitable Trust portfolio, as he commented:

I go down the list of stocks in the S&P 500 that are down the most and see if there’s anything that kind of strikes my fancy. Incredibly, many of today’s market’s worst performers were indeed linked to the data center. Qnity Electronics, a material company used by chipmakers, is down 5%. We own this one for the Charitable Trust. It’s had a parabolic move. Even after this pullback, I think it’s too expensive for the moment.

Qnity Electronics, Inc. (NYSE:Q) provides materials and chemical solutions used in the manufacturing of semiconductors and electronic components. Cramer mentioned the stock during the April 27 episode and said:

After today’s pullback, the SOX is up 46% above its 200-day moving average, not perfect. At the end of February 2000, SOX was up 96% from its 200-day moving average. Alright, we’re not even half as overextended as we were back then. So I, look, I’m concerned too, okay? I don’t like rapid moves, I don’t like parabolic moves, and lately we’ve seen a lot of parabolic moves all over the market, and those are worrisome.

I don’t want to overreact, but we’ve been taking some action around the edges for the Charitable Trust on the sell side… For example, last Thursday, the Charitable Trust trimmed some of its position in Qnity Electronics. That is a DuPont spinoff that makes specialized materials for semiconductors, and it rallied 30% from March 30th to April 23rd. No, too fast.