Intel breaking out last week boosted the tech sector. An upgrade of Advanced Micro Devices helped today. PHLX Semiconductors is climbing. That spills over to KLA Tencor and Applied Materials. Ciena is up on a great talk by Verizon’s Ivan Seidenberg yesterday at the NXTcomm telecommunications industry trade show in Chicago.
“Tech is just roaring today,” Cramer said on Stop Trading!.
“There is a remarkable resurgence of IBM,” Cramer said. “They’ve been buying back stock hand over first, and that’s working.”
Despite a hard rule that tech should not be bought before August, Cramer said there are some good short-term trades in the market right now.
He expects another $7 from NVIDIA: “Graphics chips are hot…this one can go higher.”
Intel should hit $27, and SanDisk should make it to $50, he said. EMC, he believes, is headed to $20.
And with YouTube growing 7% a week, investors might want to buy some Level 3 Communications as a play on the bandwidth shortage Cramer said we have.
“This group has got legs,” Cramer said. “We should focus on it.”
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