Jim Cramer Says Microchip Stocks Are High Flyers

Jim Cramer said Cisco Systems (CSCO) - Get Report had a disappointing quarter, but the company's acquisition of AppDynamics moves it in the right direction. Cramer said, "Cisco's latest acquisition is about less legacy and more and more enterprise software, and that's important for Cisco to get a higher multiple."

While Cramer likes Cisco, he's a bigger fan of three names in the chip space. "Micron (MU) - Get Report , Seagate (STX) - Get Report and Western Digital (WDC) - Get Report are still buys. A lot of the technology I follow is in semiconductor, and it is very strong."