TheStreet.com TV Recap: Seasonal Tech Rally Kicking

"We are seeing signals that the traditional August-September tech rally that goes right to the end of the year is so alive that I urge people who are frightened by any of the mortgage issues to find themselves into the tech companies," Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Tuesday.

Component companies are surging in revenue and also in margins because they've gotten their costs down, he explained. It's been such a long time since business has been good that the companies have been cutting headcount.

Therefore, now when there's any bit of sales, "there's been tremendous, what's known as leverage, to the sales because of the gross margins," Cramer said.

It's not too late to own Intel (INTC) and may not be too late to own Western Digital (WDC), a company Cramer said he used to own 4% of for a very long time.

Concerning Advanced Micro Devices (AMD), he called the company's product release "disappointing."

"I expected more," Cramer said, adding that he believes AMD, like Circuit City (CC), is a company that doesn't have a reason to exist.

"I was impressed that AMD at one point had been competitive against Intel," he said. "I don't think Intel could have the expansion and gross margins above 52% if AMD had not faltered."

>To order reprints of this article, click here: Reprints