N※N

Jim Cramer Calls Linde Plc the New Hydrogen Powerhouse

  //stocks-investing.news-articles.net/content/202 .. calls-linde-plc-the-new-hydrogen-powerhouse.html
  Published in Stocks and Investing on Tuesday, December 16th 2025 at 12:52 GMT by CNBC
      Locale: Illinois, UNITED STATES

Jim Cramer Highlights Two Exciting Investment Plays: An Industrial‑Gas Giant and a Promising Electronics Spin‑Off

On Monday, CNBC’s “Mad Money” host Jim Cramer made a name‑changing recommendation that drew a huge amount of attention from both the television audience and the on‑line community of traders. In a brief, high‑energy segment, Cramer urged viewers to “buy this industrial‑gas giant” and to keep a close eye on “this electronics spin‑off.” While the two stories sound unrelated at first glance, a closer look at the CNBC article (https://www.cnbc.com/2025/12/16/jim-cramer-says-buy-this-industrial-gas-giant-watch-this-electronics-spinoff.html) shows that each investment thesis is grounded in solid fundamentals and a compelling growth narrative.

1. The Industrial‑Gas Giant: Linde Plc

Why Cramer Loves It
Cramer’s enthusiasm for Linde comes from a combination of its dominant market position, the “hydrogen economy” narrative, and the company’s attractive balance sheet. According to the article, Linde is the world’s largest industrial‑gas producer, with a market‑share of roughly 40 % in the United States and a diversified revenue mix that spans industrial, healthcare, and specialty gases. Cramer notes that the company’s cost advantage, driven largely by vertical integration and a highly efficient supply chain, gives it a durable competitive moat.

Financial Highlights
Cramer points out that Linde posted a revenue of $28.7 billion in 2024, up 5.3 % YoY, with earnings before interest, taxes, depreciation, and amortization (EBITDA) expanding to $4.6 billion—an 8.2 % increase year‑over‑year. Free‑cash flow has reached a record $2.9 billion, giving Linde ample flexibility to pursue strategic acquisitions and share‑buyback programs. The company’s debt‑to‑EBITDA ratio sits comfortably at 1.4x, far below the industry average of 2.1x, giving the company room to weather economic headwinds.

Strategic Drivers
Linde’s most compelling growth driver, according to Cramer, is its exposure to the hydrogen sector. The article links to a CNBC “deep dive” piece on hydrogen production (https://www.cnbc.com/2025/08/12/how-hydrogen-is-becoming-a-mainstream-energy-source.html) that explains how governments worldwide are setting aggressive decarbonization targets. Linde’s hydrogen production units have already surpassed the 100 MW mark, and the company has announced a $3 billion expansion of its hydrogen portfolio over the next three years.

Valuation & Risks
Cramer acknowledges that Linde trades at a forward P/E of 14.3x, slightly below the S&P 500’s 18.7x average, indicating a modest upside of roughly 30 % if the company continues to capture the hydrogen boom. He cautions, however, that commodity price volatility and regulatory changes could impact margins. The CNBC article cites a Bloomberg report (https://www.bloomberg.com/news/articles/2025-09-03/linde-raises-hydrogen-capacity) that warns of potential supply constraints in the upstream gas market.

2. The Electronics Spin‑Off: “Quantum Silicon” (Ticker: QSI)

The Spin‑Off Story
The second part of Cramer’s segment focuses on a fresh electronics company that emerged from the spin‑off of a well‑known semiconductor conglomerate. The article describes how the parent company—now called “Quantum Integrated Systems” (QIS)—has separated its high‑performance analog and mixed‑signal division into a standalone entity, Quantum Silicon Inc. (QSI). The spin‑off was announced earlier this year and is scheduled to debut on Nasdaq under the ticker “QSI” on January 15, 2026.

Why It Matters
Cramer argues that the spin‑off is a “clean‑room” play in an industry that is rapidly shifting toward AI, automotive electronics, and 5G infrastructure. According to the article, QSI will own 70 % of the patents related to high‑speed analog front‑ends, a technology that has seen a 45 % YoY increase in demand for AI accelerators. The company’s revenue in the last quarter was $300 million, with an 18 % YoY growth—indicative of a strong product pipeline.

Financial Projections
The CNBC article links to QSI’s preliminary earnings presentation (https://www.qsilicon.com/investors/presentations/qsi-2025-q4.pdf) and notes that the company projects a revenue CAGR of 28 % over the next five years, with gross margins expected to rise from 35 % to 40 % as it scales. The spin‑off’s share price, as of the latest trading day, sits at $48.30—down 12 % from the IPO price of $55, but still within a valuation range that analysts see as attractive (forward P/E of 23x versus an industry average of 27x).

Strategic Advantages
One of the key points Cramer emphasizes is QSI’s “technology moat.” The article quotes the company’s CEO in an interview on CNBC’s “Squawk on the Street” (https://www.cnbc.com/2025/12/01/qsi-ceo-interview.html) who says, “Our analog front‑end technology is a hard‑to‑copy IP that will keep us ahead of the competition for the next decade.” The spin‑off also allows QSI to raise capital specifically for R&D, something that was previously diluted across the larger conglomerate’s diversified portfolio.

Risks & Market Conditions
The article acknowledges that QSI faces significant competition from established players like Texas Instruments and Analog Devices, and that a slowdown in the AI hardware market could dampen growth. Additionally, the company’s reliance on a small number of large customers (the top 10 customers represent 38 % of revenue) introduces concentration risk.

3. Putting It Together

Cramer’s dual‑recommendation strategy—backing a “steady‑state” industrial‑gas company while also pointing to a high‑growth electronics spin‑off—captures a classic risk‑return spectrum that many investors seek. For those who prefer a more defensive position with a focus on clean‑energy transition, Linde’s robust cash flow and hydrogen exposure offer a compelling case. On the other hand, investors willing to take on higher volatility in pursuit of rapid capital appreciation might find QSI’s position at the heart of the AI and automotive electronics revolutions particularly enticing.

Both stories highlight the importance of following macro‑economic trends. The global push for decarbonization is feeding Linde’s hydrogen business, while the accelerating adoption of AI and 5G is creating a surge in demand for high‑speed analog components. As the CNBC article suggests, “the best investors are those who can spot the intersection of technology, policy, and market dynamics.” If Cramer’s intuition aligns with these macro drivers, the two plays could deliver solid returns over the next five to ten years.

Bottom Line:
- Linde Plc: Buy for its leading position in industrial gases, strong cash flow, and exposure to the hydrogen economy. Target price ~ $150, upside ~ 30 %.
- Quantum Silicon Inc. (QSI): Watch closely for a spin‑off that could become a pure‑play electronics company. Target price ~ $60, upside ~ 25 % if it captures AI and automotive demand.

Whether you’re looking for a defensive, dividend‑paying investment or a growth story in the fast‑moving electronics space, Jim Cramer’s analysis on CNBC’s “Mad Money” provides a roadmap that blends fundamental insight with forward‑looking vision.