Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSyeda Seirut JavedTue, August 11, 2026 at 12:40 PM GMT+2 3 min readCramer's Case for the Semiconductor Equipment "Troika"During the August 6 episode of CNBC's Mad Money, host Jim Cramer pointed to the bottleneck in data center memory production and urged investors to focus on the companies building the fabrication machinery. He highlighted Lam Research Corporation (NASDAQ:LRCX), KLA Corporation (NASDAQ:KLAC), and Applied Materials, Inc. (NASDAQ:AMAT) as the backbone of American technology. Cramer stated:Alright, look, we know, and you heard about it all day on the network, there is a shortage of every kind of memory in the universe of the data center. Owning the companies who need memory, we know that can be dicey, as we know from the crazy action in the stocks, so can owning the companies that actually make the memory. But owning the companies that make the machines that make the memory, wow. I think they're the most consistent and the most valuable because there are no worries about demand, obviously, and they're all flush. The semiconductor capital equipment troika is Lam Research, KLA, and Applied Materials.Is Lam Research, KLA, or Applied Materials the Best Chip Equipment Buy? Jim Cramer Weighs InEvaluating Executive Leadership Across the Big ThreeCramer added that a single winner among the trio remains difficult due to strong leadership across all three organizations. He highlighted personal connections and executive capability as major differentiators within the group. He commented:It's very difficult to pick just one because they're so spectacular. Long-time viewers know that one of my all-time favorite guests is Rick Hill. He's the retired CEO of Novellus, which sold itself to Lam Research. That makes me partial to Lam, and it doesn't hurt that CEO Tim Archer is from the Rick Hill coaching tree. But this is not an easy choice. I regard Gary Dickerson, the CEO of Applied Materials, as the most vocal champion of the group, which, let there be no doubt, is the real intellectual property behind the American semiconductor food chain. These companies are the envy of the world, people, including China, which we're constantly told is ahead of us in technology. No, they aren't, at least not when it comes to making semiconductors. These three are our edge.Hedge Fund Holdings Rise Across All Three Equipment GiantsWhile Cramer views all three as elite plays on memory demand, hedge fund positioning and valuation metrics highlight distinct profiles across the troika. Smart money expanded across the entire group in the first quarter of 2026. Applied Materials, Inc. (NASDAQ:AMAT) led institutional sentiment with 138 hedge funds holding positions in the stock, rising from 111 funds in the prior quarter. Lam Research Corporation (NASDAQ:LRCX) had 123 hedge fund positions compared to 104 in the previous quarter. Lastly, KLA Corporation (NASDAQ:KLAC) held 71 hedge fund positions in Q1 2026, marking an increase over 67 in the prior quarter.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info