China bans Micron chips: Cramer says it’s ‘just the beginning’

Micron Technology Inc (NASDAQ: MU) lost about 3.0% on Monday after China told its companies engaged with critical information systems to no longer buy chips from the Boise-headquartered firm.

Micron to take a $3.0 billion hit

Its Cyberspace Administration cited a significant security threat as it announced the ban.

Today’s development marks the most meaningful retaliation we’ve seen from China so far against the U.S. efforts to block its access to advanced semiconductor technology. Reacting to the news, famed investor Jim Cramer said:

Versus the start of this, Micron shares are still up 30% at writing.

AMD could be the next on China’s list

The Nasdaq-listed firm is scheduled to report its third quarter financial results late next month. Consensus is for it to lose $1.71 a share versus $2.5 per share of earnings a year ago.

Interestingly, Cramer doesn’t expect the retaliation from China to be restricted to Micron Technology. On CNBC’s “Squawk on the Street”, he added:

Interestingly, though, shares of Advanced Micro Devices Inc (NASDAQ: AMD) are keeping in the green on Monday.