Micron’s good quarter lifted the entire market on Tuesday

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Wall Street rallied sharply on Tuesday, ending a three-day losing streak, and CNBC’s Jim Cramer believes Micron Technology’s quarterly results played a role in shifting market sentiment – at least for a session.

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

Micron, which makes memory chips used in data centers, PCs, smartphones and vehicles, reported better than expected quarterly revenue and earnings after Monday’s close. Its stock jumped 10.5% on Tuesday, as investors applauded the results and his bullish forecast.

“In this business you need truth telling tentacles, and Micron is the one who has almost all of them,” Cramer said. For example, Micron CEO Sanjay Mehrotra touted 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, ”Cramer said. Each of these companies saw their stocks end in the green on Tuesday.

“And when data centers are booming, you know what that means. It’s time to buy AMD, Nvidia and [Marvell Technology], of which the latter has just reported a large number and is well down from its peaks, ”Cramer said.

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Mehrotra’s optimistic outlook for 2022 over the shortage of memoryless chips has allayed some fears on the street about the auto sector, Cramer said, after the industry has been forced to limit vehicle production in recent months.

And the company’s positive reviews of its smartphone business also signal the strength of iPhone maker Apple, as well as semiconductor companies Skyworks Solutions, Broadcom and Xilinx, Cramer said.

“Of course, most investors only care about Apple… not its suppliers,” Cramer said. “My goal, however, is to show you how far reaching Micron is that it could pretty much carry the entire market on its back,” especially mega-cap tech stocks.

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

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