Jim Cramer on AMD: “You Use These Downgrades to Buy”
Key takeaways
- Jim Cramer on AMD: “You Use These Downgrades to Buy” Syeda Seirut Javed Wed, May 6, 2026 at 11:52 PM GMT+7 2 min read AMD INTC Advanced Micro Devices, Inc.
- For a long time, we had a CPU glut that constantly weighed on Intel and AMD, the two main players here.
- These stocks have to blow through all sorts of levels to get to where they’re inevitably going.
Jim Cramer on AMD: “You Use These Downgrades to Buy” Syeda Seirut Javed Wed, May 6, 2026 at 11:52 PM GMT+7 2 min read AMD INTC Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Cramer highlighted the increase in demand due to the data centers, as he stated:
The CPU companies are similar. For a long time, we had a CPU glut that constantly weighed on Intel and AMD, the two main players here. Plenty of capacity, not enough uses. Then the data center comes along, and there’s no longer a glut. There’s a shortage because the data center produces agents, and agents need an insane amount of CPUs. When you have a shortage, the company that makes the product pretty much becomes a growth stock overnight. The problem is, growth stocks get much higher valuations than value stocks, and the market can’t handle the transition all that quickly.
These stocks have to blow through all sorts of levels to get to where they’re inevitably going. And that’s the gallop that I’m seeing. That’s the gallop that you’re hearing. That’s the gallop I’m talking about. Periodically, some analysts will try to call a high. We had one today, saying that AMD had hit its peak. I come back and say, why? How do you know? Did the CPU shortage end? Do we not have any more agents? If it hasn’t ended, then the estimates are still too low. If the estimates are still too low, the stock’s going to go up when we find out the real numbers. So you use these downgrades to buy.