'RealMoney' Radio Recap: Tech Check

The fourth-quarter tech rally is ready to roll, James Cramer said Friday on his "RealMoney" radio show.

Microsoft (MSFT Quote) is seeing huge demand for its Xbox 360, having already sold out of its planned Nov. 22 launch, said Cramer. Micron (MU Quote) raised estimates Thursday night. Foundries such as Taiwan Semiconductor (TSM Quote) are seeing "big upticks" in orders, said Cramer. National Semiconductor (NSM Quote) boosted its dividend and Texas Instruments (TXN Quote), Broadcom (BRCM Quote) and Qualcomm (QCOM Quote) "can't meet demand," Cramer said. Ditto for Motorola (MOT Quote) on many of its cell phones, according to Cramer.

Cramer pointed out Apple Computer (AAPL Quote) was downgraded at $50 earlier this week, but the stock was fetching $53.17 Friday afternoon.

Not every area of tech is rallying, though, said Cramer. There are problems in disk drives, since Apple decided to use flash memory in its iPods instead of small disk drives, he said. But flash makers such as SanDisk (SNDK Quote) are doing great, according to Cramer.

Cramer said Cisco's (CSCO Quote) problems seem to be Cisco-specific. Intel (INTC Quote), although it has been a laggard, trades at just 16 times earnings, so Cramer refuses to give up on it.

"The most important factor out there in favor of technology is the skepticism." said Cramer. "That skepticism is misplaced."

Don't miss out on the fourth-quarter tech rally just because there are pockets that aren't doing as well, Cramer advised. The fourth quarter starts next week. "I need you to have at least one tech in your stock portfolio," he said.

RealMoney.com contributor and Stocks Under $10 co-author David Peltier joined Cramer to discuss low-priced stocks. Peltier had these things to say about the stocks mentioned.

Metretek Technologies (MEK Quote): The company warned last night, and there is "downside risk should natural gas prices retreat." At least wait for a pullback before buying.