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Cramer’s Technology ‘Tell’

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This earnings season hasn't been an easy one for tech investors. "We've gotten a lot of mixed signals," Cramer explained.

Some of the biggest tech companies on the planet issued results that left the Street at best underwhelmed. "I'm talking major players like IBM, Oracle, Qualcomm and Intel," said Cramer.

After those kind of results it would seem reasonable to conclude that the sector remains challenged.

However there were a handful of tech companies that impressed the Street. "We got a much better than expected number from Microsoft," reminded Cramer, "and Broadcom was well received too," he said.

Bernhard Lang | The Image Bank | Getty Images

In circumstances such as these, when the information could be interpreted either positively or negatively – pro investors look for a 'tell'.

And for Jim Cramer that 'tell' is Avnet.

"When I want a read on technology, I talk to Avnet," Cramer revealed. "Avnet's electronics marketing business is the world's number one distributor of electronic components like semiconductors. And their technology solutions business is among the biggest distributors of information technology hardware, software and services out there."

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So how's business?

According to Cramer's interview with Avnet CEO Rick Hamada demand is on the upswing.

Cramer is always looking for incremental improvements in parts of the market that are largely considered challenged and he may have discovered something in his conversation.

Despite ongoing headwinds overseas, Hamada said, "We're seeing our components business in Europe ready to cross over to growth year on year. And Asia already crossed back over to year on year growth."

That Cramer said was a stop trading moment.

Combine that outlook with commentary from Eaton CEO Sandy Cutler and PPG CEO Chuck Bunch, and it would seem to support Cramer's thesis that the global economy may have bottomed and perhaps it's even getting incrementally better.

Looking forward, Hamada sees business not only growing but potentially booming. "Some of our suppliers are talking about going from 10 billion connections today to more than 50 billion connections in the not too distance future." That's a 5-fold increase.

Although Hamada conceded that uncertainty had become the new norm, he also was largely optimistic. If anything, Cramer's tech 'tell' suggests the future of tech could be promising.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
AVT
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IBM
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ORCL
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QCOM
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INTC
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MSFT
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BRCM
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