'When tech stocks go down they're not necessarily out,' Jim Cramer says

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'Mad Money' host Jim Cramer says it's 'crazy' to sell semiconductor stocks such as AMD and Nvidia 'when they report good quarters with a tiny bit of irrelevant hair on them.'

, respectively, according to Factset. Nvidia has since rallied almost 6% to $212.28 from its lowest intraday trade, and AMD has since surged from its low point more than 24% to $39.88 per share as of Monday's close."The stocks were reacting to the charts, to the chatter, to the oh-so-slight revisions on one or two lines of gibberish that control absolutely nothing," he said. "I wasn't worried about AMD or Nvidia ...

Their semiconductors are indispensable because data is a very valuable commodity, the host explained. Companies are seeking user data for various business purposes in almost all industries, including music, television, food, retail, news, cars and a litany of others. Chipmakers build products that can process information. AMD makes semiconductor devices for computer processing. Nvidia produces chips for processing graphics that can be used for driving cars and in video games.

"In that case, it's crazy to sell these stocks when they report good quarters with a tiny bit of irrelevant hair on them," Cramer said. "Nobody will remember that fly in the ointment a week later."

 

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