Jim Cramer Says Don't Be So Eager To Buy This Semiconductor Stock On 'First Dip'

Author: Avi Kapoor | February 21, 2024 09:28am

On CNBC’s "Mad Money Lightning Round," Jim Cramer said he likes MPLX LP (NYSE:MPLX) very much, adding, "That’s a very good situation."

MPLX recently reported better-than-expected results for its fourth quarter. The company posted earnings of $1.10 per share, beating expectations of 94 cents per share. Its sales came in at $2.97 billion, versus market estimates of $2.85 billion, according to data from Benzinga Pro.

"We’re going to let these stocks come in a little here," Cramer said when asked about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). "We cannot be so eager to buy the first dip."

Taiwan Semi recently clocked a 7.9% year-on-year revenue growth in January 2024 to NT$215.79 billion ($6.9 billion). The critical Apple and Nvidia supplier experienced a sales increase in January, driven by strong demand for AI chips, which helped counterbalance the ongoing decline in consumer electronics, Bloomberg reported.

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The "Mad Money" host recommended to "ring the register" on Celestica Inc. (NYSE:CLS). "You’re literally going to sell one-third of it. Celestica is a very dicey situation," he added.

Celestica recently reported better-than-expected fourth-quarter financial results and issued first-quarter guidance above estimates. The company also appointed Kulvinder (Kelly) Ahuja to its Board of Directors.

Price Action:

• Shares of MPLX gained 0.7% to close at $39.32 on Tuesday.
• Taiwan Semiconductor shares fell 1.1% to settle at $125.33.
• Celestica shares fell 5.2% to settle at $37.46 on Tuesday.

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Photo: Shutterstock

Posted In: CLS MPLX TSM