CNBC’s Jim Cramer on Tuesday broke down a few of the best-performing shares within the Nasdaq 100 in 2021, providing his ideas on how buyers ought to strategy them within the new 12 months.
Lucid Group shares rose 280% in 2021, and Cramer mentioned he is aware of many buyers are justifiably searching for “the subsequent Tesla.” Nevertheless, he cautioned that Lucid continues to be within the early phases of scaling up manufacturing.
“As a lot as I like the story, I hate the timing, particularly with one other lockup expiration … coming later this month,” he mentioned. “The final one crushed the inventory.”
Cramer jumped to the fifth-best performer, Marvell Technology, as a result of he mentioned numbers 2-4 — Moderna, Fortinet and Nvidia, respectively — on Monday’s episode of “Mad Cash” as part of a segment on the top S&P 500 stocks.
For Marvell, Cramer famous he is lengthy been a fan of the semiconductor firm, which has undergone a reinvention below the management of President and CEO Matt Murphy. “I believe it could possibly hold working in 2022 as a result of it is a actual firm with actual merchandise and actual earnings. Discover, it was barely off at this time at the same time as the remainder of tech melted down,” Cramer mentioned.
Technicians work on equipment on the Utilized Supplies facility in Santa Clara, California.
David Paul Morris | Bloomberg | Getty Photographs
Cramer mentioned he believes buyers ought to look to personal Applied Materials, shares of which rose 82% in 2021, or certainly one of its fellow semiconductor tools makers comparable to KLA Corp. and ASML. KLA was the ninth-best performer within the Nasdaq 100, whereas ASML was No. 11.
Cramer cited the long-term demand traits, as semiconductors turn into integral to a rising variety of merchandise from cell telephones to cars. “Consider them because the restricted arms sellers within the semiconductor chilly conflict. I might purchase them on any dip, nevertheless shallow,” he mentioned.
Cramer mentioned regardless that Datadog is taken into account a best-of-breed firm on the planet of cloud-based information analytics and monitoring, he believes buyers are higher suited in a distinct a part of the inventory market proper now.
“This factor misplaced 8% of its worth yesterday for no specific cause after which tumbled one other 3.7% at this time. … It is not the sort of inventory you possibly can afford to personal when charges are on the rise,” Cramer mentioned.
Cramer mentioned he believes Intuit —which has TurboTax, QuickBooks and Credit score Karma in its product suite — has one of the best likelihood of any firm on the checklist to repeat its “terrific” 2021 efficiency this 12 months. Cramer touted Intuit’s aggressive acquisition technique lately and mentioned it is turn into an indispensable firm for small and medium-sized companies. It rose almost 70% in 2021.
Sundar Pichai, chief govt officer at Google LLC, speaks through the Google Cloud Subsequent ’19 occasion in San Francisco, California, U.S., on Tuesday, April 9, 2019. The convention brings collectively trade consultants to debate the way forward for cloud computing.
Michael Quick | Bloomberg | Getty Photographs
Google-parent Alphabet noticed its inventory bounce 65% final 12 months. Whereas some could say it is simply catching as much as its mega-cap tech friends, Cramer mentioned the inventory’s story is extra difficult than that. The corporate benefited from the rebound in promoting spending from industries comparable to journey, Cramer mentioned, including that buyers are additionally anticipating massive issues from the Google Cloud division.
Cramer mentioned he is a fan of Atlassian, which makes instruments for software program builders, as an organization.
“I just like the product, appears indispensable to many,” Cramer mentioned. “However that is one which’s simply completely out of fashion, so if you wish to keep it up, that you must get used to ache.”
Equally to Atlassian, Cramer mentioned he likes Zscaler as an organization however believes the cybersecurity inventory, which rose 61% in 2021, is hard to personal at this present second.
Chipmaker AMD rose 57% final 12 months, and Cramer mentioned he thinks the inventory has turn into one which buyers ought to personal, not commerce.
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Disclosure: Cramer’s charitable belief owns shares of Nvidia, Marvell Expertise, AMD and Alphabet.