“Buy Cadence Design Systems (NASDAQ:CDNS) as a play on the booming chip industry,” Jim Cramer said on Thursday’s “Stop Trading!” segment. Cramer mentioned that chip maker Linear Technology Corp. (NASDAQ:LLTC) reported a lower first-quarter profit this week, but the company also said that orders picked up during the second half of the quarter. That pickup in demand will force Linear to make new semiconductor equipment, which in turn will increase demand for Cadence since they make engineer and design automation software and hardware. “I don’t think people realize the power of the semiconductor cycle,” Cramer said. Moving on to the auto sector, Cramer recommended PPG Industries Inc. (NYSE PG) after the company reported a surge in third-quarter earnings, and said automotive production will stay at third-quarter levels, or possibly go higher. Cramer said demand is picking up for autos, and it’s not just tied to the Cash for Clunkers program. He also recommended Johnson Controls Inc. (NYSE:JCI) for a play on future demand in the pipeline for autos. “People should get a little more bullish about the auto industry,” Cramer said. Join the fastest growing community of small cap investors at Stockhideout.com