Here’s what Jim Cramer is buying amidst the ongoing sell-off

The S&P 500 index is down another 1.0% on Friday, but Jim Cramer plans on “putting money to work” because the ongoing sell-off, he says, has made many stocks fairly inexpensive to own.

Cramer’s bull case for General Motors

One name in particular that pops out to him is the legacy automaker General Motors Co (NYSE: GM) that’s down a little under 20% this month. On CNBC’s “Squawk on the Street”, the Mad Money host said:

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General Motors trades at seven times earnings. It’s got a much better balance sheet. It’s doing a lot of very high-tech stuff. They have the chips, so they will continue to sell more. The demand is unlikely to go down due to four rate hikes. So, I’m focused on companies like General Motors.

Just a day earlier, billionaire investor Jeremy Grantham said the U.S. stocks were in a “superbubble”, and the benchmark could plummet to 2,500 level, which, as per Cramer, is an irresponsible thing to say.

Cramer likes the semiconductor space

Other than GM, Cramer is interested in buying the semiconductor stocks, following a 12% decline in the VanEck Semiconductor ETF (SMH). Behemoths like AMD and Nvidia Corp (NASDAQ: NVDA) are his top picks in this sector.

We sold some AMD at $160, but we’ve started buying it back. And then Nvidia, I think, has a lot going on. It’s your gaming chip, it’s your metaverse chip. So, I like these semiconductors that have come down a great deal. I like companies that used to be very expensive but are not now.

Earlier this week, however, Piper Sandler’s Harsh Kumar downgraded Advanced Micro Devices to “neutral” and slashed his price target to $130, citing several possible headwinds in 2022.