Cisco Systems, Inc. (NASDAQ:CSCO), Intel Corporation (NASDAQ:INTC) and Microsoft Corporations (NASDAQ:MSFT) remain the top picks for ‘Mad Money’ trader, Jim Cramer, on CNBC, being some of the stock in the old tech industry with the potential of offering a good upside going forward. Intel Corporation (NASDAQ:INTC) makes its way into the top of the list after reporting solid second-quarter results that saw its stock rally in the market by 9%. Intel according to Cramer continues to rally in the market at the back of increased demand for computers from corporates and a reduction of expenses on unnecessary products.
“Intel can trade higher in part because companies are once again spending on computers and part because Intel itself is no longer spending like a drunken sailor on equipment that it may or may not be able to get a good return,” said Cramer.
The recent resurgence of Intel Corporation (NASDAQ:INTC) can be attributed to its new CEO, Brian Krzanich, who has opted to spend money on equipment that can guarantee payback or by engaging in the buying back of the company’s stock. Crammer remains bullish on Intel Corporation (NASDAQ:INTC) to trade higher as corporates increase their spending. The major concern as of the moment is the fact that Intel does not have any mobile strategy that is essentially important going forward.
Cisco Systems, Inc. (NASDAQ:CSCO) is another old tech company that Cramer is keeping a close eye on, that he believes has a high potential of turning out to be the next Intel Corporation (NASDAQ:INTC). Cisco according to Cramer has spent many years in the dark but is finally making its mark in the industry. Cisco Systems, Inc. (NASDAQ:CSCO) is already cheaper as a form of investment and is also offering good dividends.
The fact that Cisco Systems, Inc. (NASDAQ:CSCO) is constantly buying stock means that shareholders have the chance of enjoying maximum value on their investments.
“The stock has gotten cheaper, it has as good dividends, the company keeps buying stock; it could be the next Intel,” said Cramer
Microsoft Corporations (NASDAQ:MSFT), on the other hand, is a stock that Cramer is maintaining cautionary approach on, until it posts its earnings on the 22nd of this month. The cautionary approach by the bullish trader has been prompted by the fact that the market has remained tough on companies that have had a good run in the market towards the posting of earnings.