×

Make Way for the Mobile Internet Revolution

Since the dot-com bubble burst more than a decade ago, the technology sector has been "in the doghouse," but Cramer said Tuesday that's changing. Product cycles, he explained, are helping the tech sector get the respect it deserves.

For years, the "Mad Money" host said, there weren't enough new products in tech. Therefore, there weren't any new product cycles. As a result, tech was seen as a play on the strength of gross domestic product. It was a weak GDP play, though. In other words, investors would sell any time tech stocks went up because like with steel or aluminum, they thought the momentum inventories were built up was a moment to get out. So analysts treated tech stocks like commodity makers and their constant downgrades held them down.

What's changed, Cramer said, is that there are so many new products out. There are so many product cycles, he added, and all at once.

Not only is the tablet important, for example, but so are the components inside it and infrastructure to power it. Then there's social networking, social networking gaming, Web video and more. All of these things, he explained, need support systems of their own.

So it's not just Apple creating the device, but the many companies behind it, who make parts for the products. As handheld devices seek to be equal, if not superior to television or desktop computers, they need improved sound from Cirrus Logic or picture from Akamai . The data needs to be stored away, which is handled by EMC and NetApp allows the data to play.

"Put it all together and you have handheld devices in a new product cycle — tablets in a product cycle, cloud and cloud accouterments in product cycles, cable internet in a product cycle and all of it happening at once," Cramer said. "Of course we call it the mobile Internet tsunami, but it's really a revolution."

Many analysts continue to worry about inventory and restocking, as if tech products were sweaters and there's not enough cold weather or steel that nobody has a need for. But Cramer said the product cycle can't be stopped and these analysts will soon have to change their tune. Product cycles used to drive stocks regardless of how the economy was doing and he thinks that's where tech is right now.

When this story was published, Cramer's charitable trust owned Apple and EMC.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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