AMD Stock Forecast: Advanced Micro Devices Inc may surge on Jim Cramer's call, global chip shortage

Is it time to ride the lightning and buy NASDAQ: AMD? The answer is yes according to Jim Cramer of CNBC. The colorful stock expert has given a ringing endorsement to Advanced Micro Devices, reiterating his long-running buy recommendation. In an answer to a viewer on his "Lightning Round" show,

Cramer praised the company and especially CEO Lisa Su for her leadership in the industry. In a world dominated by social media – such as Reddit's WallStreetBets – rather than television, the outspoken commentator may have less influence. Nevertheless, some may opt to add AMD to their portfolios, only due to the mention.

AMD Stock Buy or Sell

Veteran investors may remember that Cramer does not always get things right – but there are other reasons to like AMD. First, its larger rival Intel is struggling to keep up to speed with the latest chip technologies, which are becoming smaller and smaller. The smaller Silicon Valley veteran – both firms were founded in the 1960s – is gaining ground. 

Another reason to like AMD is also more related to the broader industry. A global shortage in microchips has been causing disruptions, such as that in Ford's factories. The large automaker is one of several companies calling on President Joe Biden to provide some relief and help ramp up supply.

Strong demand for AMD's products and low supply seems like a perfect mix for shares to resume their gains. Wednesday's premarket is showing that AMD is set to recapture the $91 level after declining on Tuesday. 

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