CNBC’s Jim Cramer on Friday laid out an investment case for five legacy technology companies that he believes could post strong returns in 2022.

The “Mad Money” host said the following stocks fit within his main theme for the year, which is investing in profitable companies that produce tangible goods: Apple, Cisco, IBM, Microsoft and Oracle.

“While most of the money-losing cloud based software stocks are now off limits, there are plenty of tech names that make real things and generate real profits,” Cramer said, contending they can perform well despite the Federal Reserve’s tightening of monetary policy.

“What you want here are boring, mature companies—the kind that are often derisively referred to as ‘old tech,'” Cramer added. “I say out with the new, and in with the old.”



Shares of Cisco have been strong since late November, Cramer said, as investors began to look past the company’s recent earnings reports.

“Those last two quarters weren’t bad because of demand. We’re actually seeing a surge in enterprise tech spending; the problem was the supply chain crisis,” said Cramer, who also touted the computer networking company’s move into software and the recurring revenue streams that accompany it.

“[Cisco CEO Chuck Robbins] says things should start turning in the second half of Cisco’s fiscal year, which starts February. I’m inclined to believe him because he’s a real straight-shooter,” Cramer said.



“This one ran up about 51% last year, but thanks to the sell-off in recent weeks, you’re getting a very nice buying opportunity here. The stock’s down 10% from its late November highs. That usually doesn’t’ happen,” Cramer said. “Microsoft is exactly the kind of tangible tech story that should work when the Fed starts hitting the brakes to stop the economy.”


Even after its breakout 2021, Cramer said he still thinks Oracle’s stock is cheap. The enterprise software giant’s most-recent quarter was fantastic, Cramer said. However, the stock has given up the gains it had post-report, due in part to Wall Street’s negative reaction to Oracle’s plans to buy electronic medical records company Cerner.

“This is another one where the recent pullback’s letting you in at an amazing price,” Cramer said.

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Disclosure: Cramer’s charitable trust owns shares of Microsoft, Apple and Cisco.

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