'RealMoney' Radio Recap: Slipped Disks

The fourth-quarter tech rally is still on, said Jim Cramer on his "RealMoney" radio show Wednesday, but he is now more selective about which segments of tech will participate.

Cramer is removing big screen TVs and disk drives from his bullish tech thesis and adding telecommunications and flash memory. Cell phones remain en fuego.

Cramer said with the economy slowing and with oil prices high, "something has to give," and he believes that people will back off purchases of big screen TVs. That means Corning (GLW Quote), Genesis Microchip (GNSS Quote) and Trident Microsystems (TRID Quote) are "problematic."

Disk-drive makers have also been suffering since Apple Computer (AAPL Quote) decided not to use small form factor disk drives in its iPod. Cramer is not tempted to buy the disk-drive makers even after their stocks have fallen, and he is also concerned about Marvell Technology Group (MRVL Quote).

Cramer says telecommunications equipment vendors such as Lucent (LU Quote) and JDSU (JDSU Quote) will benefit from increased spending by Verizon (VZ Quote) and other telecommunications companies for DSL, fiber-to-the-home and VoIP.

Cramer added that Lucent just got a contract from Dutch telecom operator KPN, so there is "spending going on in Europe, too," he said.

Among cell phones, Cramer says Cingular and Verizon Wireless should begin spending now that they have digested recent acquisitions. He likes American Tower (AMT Quote), Motorola (MOT Quote) and Powerwave (PWAV Quote), which he says at $12.76, seems "heck bent on getting to $15."

The best play on wireless is still Qualcomm (QCOM Quote), says Cramer, adding that at $44.50 Wednesday, the stock is still about where it was when it raised earnings guidance a week ago.

Cramer is still bullish on Broadcom (BRCM Quote), Microsoft (MSFT Quote), Intel (INTC Quote), Texas Instruments (TXN Quote) and National Semiconductor (NSM Quote).