Jim Cramer’s 21 Stock Calls: Micron, Affirm, and the Strength of the Data Center Complex

18. ASML Holding N.V. (NASDAQ:ASML)

ASML Holding N.V. (NASDAQ:ASML) was among Jim Cramer’s stock calls on Mad Money as he discussed how semiconductor and AI infrastructure stocks are driving the market higher. Answering a caller’s question about the stock, Cramer said:

Jeez, you know, now, this is the great problem right now. That stock’s been straight up ever since it had a great quarter, and people didn’t understand. I… am going to say, after the $75 move today, let’s just hope for a down day and get in. I don’t want to top tick it. That’s what I fear, but I think you got a great one.

ASML Holding N.V. (NASDAQ:ASML) builds and maintains semiconductor lithography equipment. It provides systems such as ultraviolet scanners and inspection tools to help chipmakers create integrated-circuit patterns. Cramer mentioned the stock during the January 27 episode and said:

Whenever there’s a chip shortage like we have now, sooner or later, these companies start buying more manufacturing equipment in order to boost production. That’s why ASML, Applied Materials, KLA, and Cramer fave Lam Research have been roaring because people know that they’ll have big orders as the year goes on. The big four semiconductor capital equipment makers rallied like crazy last year. They’re up anywhere from 29 to 39% just since the beginning of January. You’re not early, but they haven’t run nearly as much as the storage and memory makers. So, relatively, they’ve still got more room to run…

Now, the specific commentary was about Taiwan Semi investing to meet demand for AI semiconductors, not necessarily memory or data storage chips, but if anything, that’s better for the capital equipment makers because manufacturing AI chips requires more advanced hardware. ASML is best positioned for this type of leading-edge equipment, but all the big four semiconductor capital equipment companies participate in the market, which is why they all had such huge gains in response to Taiwan’s Semi’s quarter. Rational.