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Cramer: Don't Bet Against Texas Instruments

Tickers in this article: NOK AMD TXN AAPL INTC

NEW YORK ( TheStreet -- Debra Borchardt:

Texas Instruments (TXN) gives its mid-quarter update after the close of the market today. Jim, when I took a look at Texas Instruments, you know, it has been trading down, but just lately it started to tick up. Is that just a tease?

Jim Cramer: I looked at the too. It's funny, when I saw that you wanted to talk about it, I saw Avnet (AVT) starting to tick up Arrow (ARW) stating to tick up. Those are the big distributors and they tend to have a lot of Texas Instruments product. Nokia (NOK) has been trading up. Texas Instruments is deeply related to Nokia. Texas Instruments is a very inexpensive stock, but it's done nothing for ages and the mid-quarter updates have all been very bad.

Now, Intel is not doing well, Advanced Micro (AMD) not doing well. We know that there is a lot of pressure within the chain because of PCs, but we also know that it looks like Nokia just got some acceptance over in China. So, it wouldn't shock me if Texas Instruments didn't say that things are horrible this time. All they have to do is say, listen things are coming along, the stock goes to $32. So, I don't want to bet against Texas Instruments here.

Now here's my biggest problem, with Texas Instruments, it is not Apple (AAPL) , but funny things happened here. The Apple trade and all its accoutrements, has been terrible for a long time. It's almost as if both can't go up at once. Texas Instruments to me seems like, 60 cents down and a buck and a half up. That's decent risk/reward so, I'm on board here with Texas Instruments

Debra Borchardt: Do you think that Apple has just exhausted the amount of people that are going to buy it where as with Texas Instruments, so many people got out of it that maybe there's a play there.

Jim Cramer: Oh yeah definitely. Listen there are no capital gains in Texas Instruments. Everybody has a capital gain, I know, in Apple except for the people who came in at $700. They shouldn't be sellers, by the way. I mean, they want those losses to come next year because those can offset some gains. Apple remains very over owned. It's owned by people in their mad money accounts so to speak. My advice to them is I like to own Apple, but I understand why the taxman is worth avoiding, you can always buy it back.

Debra Borchardt: So, ultimately for Texas Instruments the downside you said 60 cents, upside though, it could be a buck and a half.

Jim Cramer: >I like that risk/reward.