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Cramer is Back to Loving Microsoft, Intel Combo (MSFT) (INTC)

April 5, 2012 10:54 AM EDT Send to a Friend
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On Wednesday's Mad Money, Jim Cramer gave a few key points on why he still likes the tech duo of Microsoft (Nasdaq: MSFT) and Intel (Nasdaq: INTC). Keep in mind Microsoft pays a dividend which yields 2.5 percent and Intel pays one which yields 3.0 percent, meaning stagnant stock movement still offers some returns for investors.

He noted the duo's rise to prominence in the 1980s and 90s through their 'Wintel' offerings. Recent moves by the companies suggest that dominance might soon return.

Cramer pointed out Intel remains one of the top chipmakers in the world amid struggling PC sales. Despite the lag, Intel is making some smart and dedicated moves into the mobile device market through the introduction of new low-power chips. Further, Intel is pushing its way into the burgeoning cloud computing environment. Cramer noted Intel's server unit currently only accounts for about 20 percent of the company's total sales but is growing three-times faster than its much larger PC unit.

Cramer believes the market continues to undervalue Microsoft's Xbox segment (Note: we disagree with this assessment, but that's neither here nor there). He said Microsoft is always a buy ahead of a product refresh and there's no better time than the present with Windows 8 debuting late in 2012 and the next iteration of Xbox expected to hit shelves sometime in the second half of 2013.

Microsoft shares are up 0.8 percent at last check; Intel shares are up 0.05 percent.




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