markets

Jim Cramer's Favorite Chip Stock Is Getting Bought Again

The Cramer-backed chip play is back on the buy list at roughly the same price as mid-June. Here's why that matters.

When a stock circles back to your cost basis, you pay attention. That's exactly what's happening with Jim Cramer's latest chip darling — shares are hovering right around the same level the team paid in mid-June, and they're stepping in to buy more.

Doubling down at a previous entry price is a classic move. It says the thesis hasn't broken, the price hasn't run away, and you're getting a second bite at the same apple. For retail traders watching this name, that's a signal worth noting — the smart money isn't flinching.

Chip stocks have been a rollercoaster this year, whipsawed by AI demand headlines, export restrictions, and earnings volatility. When a high-conviction team sees a pullback to prior support and adds rather than folds, it tells you something about their confidence in the longer-term setup.

If you already own the stock, this kind of add-on buying from a visible, active portfolio is the kind of confirmation that steadies nerves. If you're not in yet, a revisit to a previous accumulation zone is as clean an entry signal as you're going to get in this market.

Watch price action around this level closely — if it holds, you've got a defined risk area to trade against. Continue reading at CNBC.

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Frequently Asked Questions

Q.Why is Jim Cramer buying more of this chip stock now?

Shares returned to roughly the same price paid in a mid-June purchase, presenting what the team views as a favorable re-entry opportunity at a known cost basis.

Q.What does it mean when a portfolio adds shares at the same price as before?

Buying again near a prior purchase price typically signals that the investor's original thesis remains intact and the valuation still looks attractive at that level.

Q.When did the original purchase of this chip stock take place?

The initial buy occurred in mid-June, and the new purchase is being made at approximately that same share price.