Jim Cramer: Here's Why Apple Shares Are Going Higher

Shares of Apple's suppliers are up and that can only mean good things for the tech juggernaut's stock, Cramer asserts.
By Bret Kenwell ,

Updated from 11:17 am EDT to correct the third paragraph, first sentence on Apple's plans in China.

Shares of Apple (AAPL) - Get Report  are up by less than 1% Tuesday but TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, sees that number going a lot higher.

Why? Because the AAP holding's suppliers have gained. That means Avago Technologies (AVGO) - Get Report , SkyWorks Solutions (SWK) - Get Report and NXP Semiconductor (NXPI) - Get Report .

According to the Wall Street Journal, Apple will launch its Apple Pay service in China this February, Cramer added, but the 5.5% gain in NXP Semi, 1.5% gain in Avago and 1% rally in Skyworks is more responsible for the Apple stock rise, he said on CNBC's "Stop Trading" segment.

Apple AAPL data by YCharts

When these supply stocks move higher, it's usually because someone knows something positive, he added. If Apple is able to fuel a comeback, it could lead the broader market higher, too. 

There will likely be good news for the supplier stocks, which have low valuations and a lot of production ahead of them. "I think Apple goes higher," Cramer concluded.

At the time of publication, Cramer's Action Alerts PLUS had a long position in AAPL.

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