Tech Tops the China Boost

Intel (INTC - commentary - Cramer's Take), Research In Motion (RIMM - commentary - Cramer's Take), cell phone chips, endless upgrades. Why, why, why?

China.

As we parse through all of the spending out of China, we are without a doubt in some sort of resurgence that nobody has the inventory to meet. It is amazing how depressed the tech manufacturing business was going in to 2009 -- inventories were incredibly lean and we are seeing what happens on any snapback.

Two signs tell it all: the couponing by the Chinese government that only works if you buy gadgets -- all of which have tons of tech in them -- and the bullish statements made on Mad Money by David Aldrich last week, CEO of Skyworks Solutions (SWKS - commentary - Cramer's Take). Skyworks' materials go into all cell phones and the company can't pump out the stuff fast enough.

You can only imagine the extrapolations there: Verizon (VZ - commentary - Cramer's Take), AT&T (T - commentary - Cramer's Take), Research in Motion, Apple (AAPL - commentary - Cramer's Take) iPhones, Sprint (S - commentary - Cramer's Take), Motorola (MOT - commentary - Cramer's Take), Nokia (NOK - commentary - Cramer's Take) and LG Electronics. These companies are all inventory-constrained (although Motorola is the most problematic, as anyone on that conference call knows). That means Qualcomm (QCOM - commentary - Cramer's Take) is still strong, Texas Instruments (TXN - commentary - Cramer's Take) is a buy and Maxim (MXIM - commentary - Cramer's Take) and Linear (LLTC - commentary - Cramer's Take) work too.

There is so much good news here and so many tape-fighters that it is remarkable to see how the scramble goes on every single day in tech. Meanwhile, of course, the tech funds are the only ones experiencing inflows, if the history of fund manager inflows -- winners win -- continues.

Just plain exciting if you are a tech investor, but nauseating if you are a short-seller.

One other point: those looking for a price break have to be counting on Cisco (CSCO - commentary - Cramer's Take) delivering subpar earnings on Wednesday night. Cisco has very little retail exposure save set-top boxes (meaningful because of the change to digital), but it has the ability to say the future is brighter than the past and that may be all that matters.

At the time of publication, Cramer was long Qualcomm.

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