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TheStreet.com TV Recap: Seasonal Tech Rally Kicking

Revenue at component companies is surging, Cramer says.

"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) - Get Report

and may not be too late to own

Western Digital

(WDC) - Get Report

, a company Cramer said he used to own 4% of for a very long time.

Concerning

Advanced Micro Devices

(AMD) - Get Report

TST Recommends

, he called the company's product release "disappointing."

"I expected more," Cramer said, adding that he believes AMD, like

Circuit City

(CC) - Get Report

, 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."

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