Cramer Bearish on UMC, Advises Avoidance; Bullish on Avnet

On CNBC's "Mad Money Lightning Round," Jim Cramer said no to United Microelectronics Corporation, calling it a "difficult" choice. Cramer noted that while the stock isn't expensive, it has already risen 135% this year, and he sees no catalyst at this price level.

UMC reported July sales on August 6. The company said net sales for July increased 18.98% year-over-year, while sales for the January-to-July period rose 12.41% to NT$153.61 billion.

Cramer said Avnet is a "very good" stock. "I'm glad you reminded me. I can't believe how low the P/E ratio is. But then again, many people think this rally could end at any moment, and that's Avnet's problem."

On the earnings front, Avnet reported fourth-quarter earnings per share of $2.28 on August 5, beating the analyst consensus estimate of $1.77. The company reported quarterly sales of $8.295 billion, exceeding the analyst consensus estimate of $7.519 billion.

Cramer advised avoiding Archer Aviation Inc. He added, "If we want to make a speculative trade, there are better options in the market."

According to recent news, Archer Aviation reported better-than-expected second-quarter sales on August 10 and announced a definitive agreement with Boeing to acquire its Wisk Aero, SkyGrid, and Insitu subsidiaries.

Stock Performance

Avnet shares fell 5.3% on Tuesday, closing at $93.40.

Archer Aviation shares declined 1.1% during trading, closing at $6.32.

UMC fell 5.4% on Tuesday, closing at $18.48.