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Cramer: Tech is back, baby. Here's who could strike a deal next

Cramer: Microsoft-LinkedIn deal makes me want to buy MSFT

With the averages taking a tumble on Monday, Jim Cramer wants investors to use the weakness to buy technology stocks. After all, the tech sector is desperate for consolidation.

As soon as he saw the news of Microsoft's $26.2 billion acquisition of LinkedIn at $196 per share, Cramer knew tech was back. With tech representing more than 18 percent of the , this was big news.

"Tech is back in a big way that makes me feel like the kind of oil-related overseas imported decline we had to day is giving us some excellent buying opportunities," the "Mad Money " host said.

Many analysts described the deal as an aggressive overpay on Microsoft's part, but Cramer didn't agree. With more than $100 billion of cash in its offers and a stock down almost 10 percent for the year, that cash hoard was doing nothing for Microsoft, Cramer said. Therefore the deal was additive to the company.

With this acquisition, I am no longer worried about the growth rate. And that is the real beauty of the deal.
Jim Cramer
Microsoft CEO Satya Nadella delivers a keynote address during the 2014 Microsoft Build developer conference on April 2, 2014 in San Francisco, California.
Getty Images

With this deal, Microsoft is now a viable player in the social, mobile and cloud space. Additionally, LinkedIn's growth might be slowing, but it is still faster than anything Microsoft has.

"With this acquisition, I am no longer worried about the growth rate. And that is the real beauty of the deal," Cramer said.

As for the rest of tech, several companies were able to rally from the ripple effects of the transaction, especially those in the mobile, social and cloud space that seemed that they could potentially be taken over.

Cramer pointed to Workday and Adobe as having some nice gains early in the day. He also noted resurgence in other parts of tech, notably the semiconductors. Broadcom, Nvidia, Texas Instruments, Applied Materials and Lam Research all rallied in response. He also had Tech Data, Sanmina and Hewlett Packard Enterprise on his radar.

"None of this matters if the stock market keeps going down. You will just be catching a falling knife," Cramer said.

So, when the market has a down day, Cramer wants investors to remember tech stocks. Microsoft's deal with LinkedIn was a huge win for both companies, he said, and it could be just matter of time before there are more deals like it in tech.

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