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We’re loading up on another semiconductor stock as the tech sector gets battered

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Lisa Su is the president and chief executive of Advanced Micro Devices Inc.

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This article was originally sent out to Jim Cramer and members of CNBC Investing Club. For the most up-to-date updates, subscribe to our email list subscribe here.)

We will purchase 50 shares after you have received this email Advanced Micro Devices (AMD) at roughly $130.62. The Charitable Trust will now own 750 AMD shares following the transaction. AMD will be increased in portfolio weight by this purchase, from approximately 2.15% down to around 2.3%. 

In order to make sure that our money is available at the lower prices we’re buying a second semiconductor stock on Monday. Although market activity was very rough until a couple hours ago there has been some improvement in the last few hours that make it look positive.

Make sure to take Adobe (ADBE) for example. Adobe was the sector’s worst performer last month, despite reporting a disappointing quarter. However, if tech is so poor today with the yield of the 10-year Treasury rising again, why has ADBE moved from negative territory to positive? This action shows that many tech names have been oversold, and they are due to bounce.

AMD is a great choice. Similar Marvell Tech (MRVL) from earlierOur AMD position was retrimmed at much higher levels. We believe that the right price level is available to purchase back shares. For a quick overview of our trades, the most recent AMD trimming was made on December 1st, when the stock traded around $160. AMD shares are now trading at $130. This represents a decrease of 18% since our sale.

There has been no news between December, and now. It was the delaying of the announcement. Xilinx (XLNX) acquisition. AMD shareholders may be concerned about the delay in closing the XLNX deal. However, we believe that this deal will proceed and have full faith in Dr. Lisa Su, CEO. AMD should see the Xilinx agreement as a positive catalyst, since it will allow AMD to be more visible in the data center market and broaden its product range from Intel.

We like the idea that we can buy high-quality growth companies with a catalyst for a significant discount on our previous sale in a market where there is still much to be done.

CNBC Investing Club now serves as the official residence of my Charitable Trust. This is where I share my market intelligence and every move that we have made for our portfolio. Action Alerts Plus has ceased to be affiliated with my writings and the Charitable Trust.

 You will be notified by Jim Cramer if you subscribe to CNBC Investing Club. Jim may then make a trade. Jim will wait 45 minutes to send a trade alert, before buying or selling stock from his charitable trust portfolio. Jim may wait 72 hours to execute a trade if he has discussed a stock with CNBC TV. See here for the investing disclaimer.

 (Jim Cramer’s Charitable Trust has been AMD, MRVL. for a long time.

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