Was Jim Cramer Right About These 12 Stocks?

8. On Semiconductor (NASDAQ:ON)

Number of Hedge Fund Investors: 45

ON Semiconductor had a history of disappointing earnings, and expectations were low. But this time, the company beat estimates, delivering a solid quarter and an 11% stock rally. Cramer mentioned in his old episode about how the trend was changing:

“ON Semiconductor reported and we’ve gotten used to it missing the numbers. It’s kind of like a old shoe missing numbers at this point but not this time.”

He then quoted the company’s CEO Hassane El-Khoury who pointed to stabilizing demand in core markets, adding that China was recovering in both industrial and auto.

Cramer’s verdict? The rotation out of Nvidia (NVDA) and into the rest of the chip space was in full effect. He saw ON Semi as a major beneficiary, saying:

“You’ll see a wholesale redistribution from the once loved Nvidia to everything else.”

However, the stock has been taking a beating since then, being down by 35%. Jim has been more cautious on the semiconductor stocks recently, saying:

“The semiconductor cohort is all over the place. The ones selling into the AI team are still doing pretty well, but anything cyclical like Texas Instruments or ON Semi has, it had a real tough go.”