Texas Instruments' plans to buy National Semiconductor for roughly $6.5 billion in cash could be just the thing to save the technology space from itself, Cramer said Monday.
The "Mad Money" host said he's been worried about the industry since its seasonally weak period began in late February. European markets provide little demand in the summer months, so Cramer said tech tends to slow down in early spring. Demand doesn't usually pick up until back-to-school sales begin in late summer, he added. In addition, any weakness has been exacerbated by a glut in optical equipment, as well as supply chain interruptions due to the natural disasters that recently struck Japan.
Cramer thinks these problems are seasonal, though. He thinks most tech companies are worth more than they're selling for, which is why Texas Instruments paid $10 more than the $15 a share that National Semiconductor closed at. By end-summer, Cramer thinks tech stocks will bounce back.
Cramer said some tech stocks, however, can't seem to get out of their own way, including Cisco , Hewlett-Packard , Intel and Microsoft . Last quarter Cisco fell by 15 percent, while H-P pulled back by 2.7 percent, Intel fell by 4 percent and Microsoft tumbled by 9 percent. Meanwhile, the Dow advanced by 6.4 percent.
"It's time to accept the fact that the growth has slowed, perhaps permanently," Cramer said. "The tech leadership has passed to a whole new host of companies, three that are public and a fourth that no doubt will be: Google , Amazon , Apple and Facebook."
Google, Amazon, Apple and Facebook continually challenge each other, like Cisco, H-P, Intel and Microsoft once had, Cramer said. The latter names now only provide strong dividends, but being as they lack growth, Cramer would sell them into strength. The new leaders of tech are providing the future of innovation, even as their stocks are also subject to the annual summer lull in tech. Being as they have the growth, Cramer would look to buy GOOG, AMZN and AAPL on any weakness.
When this story was published, Cramer's charitable trust owned Apple.
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