Jim Cramer on Advanced Micro Devices, Inc. (AMD): ‘The Stock Got Slammed In The After-hours Trading’

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We recently compiled a list of the Jim Cramer on AMD and Other Stocks. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other stocks Jim Cramer is talking about.

Jim Cramer, the host of Mad Money, expressed concerns about the impact of rising bond yields on the stock market, suggesting that this trend could restrict the recent tech rally and limit broader sector gains. On Tuesday, he remarked that the bond market is creating significant disruptions, stating:

“Bonds are wrecking the narrative, driving the people outta everything that works when the Fed cuts rates and they're going right back into tech. That's the opposite of what, if you're a true bull, you want to see.”

READ ALSO Jim Cramer’s Latest Game Plan: 20 Stocks to Watch and Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch

Despite the Dow experiencing a modest decline of 155 points, the S&P 500 managed a slight increase of 0.16%, while the NASDAQ achieved a record close with a 0.78% rise on Tuesday. Cramer pointed out that the market is becoming increasingly narrow and exclusive, primarily benefiting tech stocks at the expense of broader participation, which he considers unhealthy. Cramer explained that this trend was somewhat anticipated.

He recounted how, when news broke about the Fed potentially implementing a 50 basis point rate cut, there was a surge of enthusiasm among investors who began buying bonds. They were betting on a series of rapid rate cuts, leading to expectations that bond yields would fall. Cramer noted, “It seemed a total legit thing, right? I mean the economy was slowing, that's been the pattern historically.” He added that as inflation began to ease, it appeared that history was repeating itself.

However, following the significant rate cut on September 18th, something unusual occurred: long-term rates rose for the first time since 1995. This shift, which he described as a “total buzzkill,” is beginning to manifest in corporate earnings reports. He went on to say:

“If the bond market doesn’t start behaving, or at least calming down, if longer-term interest rates don’t stop going up, we’re going to start losing the groups that have led us higher for months now.”

In conclusion, Cramer warned:

“If it [the bond market] doesn't stop its retreat, then we're gonna start questioning the idea that the Fed will keep cutting rates, ushering in a fabulous economy for 2025, which is what I was looking for.”

Our Methodology

For this article, we compiled a list of 7 stocks that were discussed by Jim Cramer during the episode of Mad Money on October 29. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.