Cramer’s Technology Tsunami Picks for 2010 (GOOG, AAPL, AMT, CCI, SBAC, SWKS, ALTR, CY, XLNX, AMZN, CSCO, ERTS, QCOM, INTC)January 7, 2010 by Douglas A. McIntyre
Tonight on CNBC’s MAD MONEY, Jim Cramer continued with his stock picks for 2010 based on investment themes. We have already seen energy shortage picks, counter-terrorism and homeland security picks, and international ADR picks; and tonight Cramer gave his high-hope technology picks in the “tech tsunami” theme for 2010. First, Cramer denies that a war between Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL) will only have one winner. Other mobile web build-out and expansion winners as theme stock picks for 2010 are American Tower Corp. (NYSE: AMT), Crown Castle International Corp. (NYSE: CCI), SBA Communications Corp. (NASDAQ: SBAC), Skyworks Solutions Inc. (NASDAQ: SWKS), Altera Corporation (NASDAQ: ALTR), Cypress Semiconductor Corporation (NYSE: CY), Xilinx inc. (NASDAQ: XLNX), Amazon.com Inc. (NASDAQ: AMZN), Cisco Systems, Inc. (NASDAD: CSCO) that is now deep into wireless and in advanced communications. Electronic Arts Inc. (NASDAQ: ERTS), QUALCOMM Inc. (NASDAQ: QCOM), and Intel Corporation (NASDAQ: INTC).
Many of these stocks share the notion that they are close to 52-week highs and some are close to 2008 highs. This list is also somewhat different than the list given in our “top picks from everyone” linking to a December 8, 2009 story with TheStreet.com’s top tech picks for 2010. A brief note on each stock and the reason Cramer likes these follows herein.
On the smartphone war between Google Inc. (NASDAQ: GOOG) for Android and Apple Inc. (NASDAQ: AAPL) for iPhone is actually a phony war where these companies will make money. Cramer even went as far to say that Lady Gaga had more insight than most analysts covering this. Cramer noted that even in 2013, less than half of the phone market will be smartphones despite 256 million units being expected to sell in 2010. Cramer thinks these companies have major room in the smartphone as there is room for far more than one player here. Cramer thinks that Apple’s iPhone is not just another iPod and has much upside. Google’s phone will just promote its core business and he thinks that Google will still go to $750 at the end of 2010 and Apple will still go to $300.00. Cramer’s notion is that this is a bad romance rather than a war.
The bandwidth solutions are tower plays, which will be much more needed, are American Tower Corp. (NYSE: AMT), Crown Castle International Corp. (NYSE: CCI) and SBA Communications Corp. (NASDAQ: SBAC). As far as components, Skyworks Solutions Inc. (NASDAQ: SWKS) is a winner in amplifiers for boosting signals that are needed. Semiconductor winners for the mobile internet expansion will be Altera Corporation (NASDAQ: ALTR), Cypress Semiconductor Corporation (NYSE: CY) and Xilinx inc. (NASDAQ: XLNX). Amazon.com Inc. (NASDAQ: AMZN) is not associated with the mobile internet, but it is becoming the cheap sale destination online and has the Kindle e-reader. Amazon.com Inc. (NASDAQ: AMZN) is one that Cramer has already been very ambitious on with a $216.00 target.
Cramer’s backbone of the internet pick is Cisco Systems, Inc. (NASDAQ: CSCO) that is now deep into wireless and in advanced communications. Electronic Arts Inc. (NASDAQ: ERTS) is a 2010 pick on its Playfish acquisition for social gaming, which is now for mobile gaming as well. QUALCOMM Inc. (NASDAQ: QCOM) is another pick that makes the web faster for 3G and 4G and it has the brains for the smartphone and some smart-books. Lastly, Intel Corporation (NASDAQ: INTC) is also going to be a winner because of its chip lineup and its number of quarters. He thinks it is going to have a monster quarter.
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CRAMER’S OTHER 2010 THEME STOCK PICKS FROM THIS WEEK ARE AS FOLLOWS:
- Cramer’s “Going Global” top ADRs for 2010
- Cramer’s Energy Shortage Stocks for 2010
- Cramer’s Homeland Security and Anti-Terrorism Stocks
JON C. OGG
JANUARY 7, 2010