Cramer: Apple an 'incredibly cheap stock'

Apple just obtained the holy trinity of tech plays, CNBC's Jim Cramer said Tuesday.

"Apple is a cloud play," Cramer said on "Squawk on the Street." "Apple is a social play. Apple is a mobile play. That's what's needed—the trinity."

Cramer's comments came as Apple announced an acquisition of social media research company Topsy, and UBS upgraded the tech company's stock to a "buy" from "neutral." Cramer said UBS' price target of $650 per share was not a reach.

The upgrade also comes as Fortune.com reported that Apple seems closer to reaching an iPhone distribution deal with China Mobile, the world's biggest wireless carrier.

(Read more: China Mobile drops hint of long-awaited Apple deal)

"The rap against Apple had been, 'No social,'" Cramer said. "This acquisition is square in the middle of social. The rap against Apple had been, 'Not enough China.' They're answering that."

Cramer, whose charitable trust holds one of its largest positions on Apple, said the company's stock remains "incredibly cheap." He said Apple's recent acquisitions represent an answer to Samsung, which has cut into Apple's market share in mobile phones and tablets.

"This is one of these, 'Listen Samsung, we're gunning for you,'" Cramer said. "This is just a time when Apple is reasserting itself just when the analysts left it. The stock is incredibly cheap. You're seeing reversion away from expensive tech stocks into cheap stocks, and Apple is the leader."

Apples shares were up more than 1.5 percent Tuesday. Apple hit a 52-week low in April at $358.10 per share, down from $700 per share in September 2012.

(Read more: Pro: Apple lacking good news going into holidays)
