Cramer has an open spot in his “Mobile Internet Index” portfolio after Cisco Systems (NASDAQ:CSCO) announced its purchase of Starent Networks Corp. (NASDAQ:STAR). He sand ARM Holdings plc (ADR)(NASDAQ:ARMH) is the perfect stock to fill Starent’s shoes. Arm is a leading semiconductor intellectual-property supplier, designing chip technology that’s used in high-tech gadgets, including most of the world’s mobile phones. The company then licenses that technology out to the industry’s major players and collects royalties. Cramer said Arm’s business model makes good business sense for semiconductor and device makers since it spreads the costs of developing complicated processors among the entire industry. He pointed out that ARM’s technology controls 95% of the portable electronics market, which makes it a virtual monopoly. Cramer pointed out that around five in every smartphone is based on ARM’s design, and that number’s increasing as the mobile Internet explodes. The company is also a play on netbook computers, due to partnership with Google (GOOG) on their new Chrome operating systems. Plus ARM has developed a processor that will compete with Intel Corp. (INTC) and Advanced Micro Devices Inc. (AMD) and uses less power and extends battery life. Cramer said the stock might not look cheap at 25 times earnings, but it is because earnings are expected to grow at 30%. “I can’t think of a better stock than ARM Holdings to replace Starent Networks in the Mobile Internet Index,” Cramer said. “This is one of the best long-term stores in the semiconductor world.” Join the fastest growing community of small cap investors at Stockhideout.com