NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment Tuesday, Jim Cramer said chips and regional banks are the hot sectors investors should be keeping track of right now.

"There's a lot of talk of a big deal coming in this group," Cramer said of the chipmakers, noting that shares of Xilinx(XLNX) - Get Report are rising after Pacific Crest's upgrade today to buy from hold. The group is "so red hot it's transcending anything right now."

Citi said it sees a 50-50 chance that Intel(INTC) - Get Report will buy Altera(ALTR) - Get Report, Cramer said, adding that shares of Altera and other chip stocks have risen on M&A speculation.

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Among those gaining are Avago(AVGO) - Get Report, which is involved in a deal with fellow Apple(AAPL) - Get Report supplier Skyworks Solutions(SWKS) - Get Report, and NXP Semiconductors(NXPI) - Get Report.

Another "red-hot" sector is regional banks, which are rising after the U.S. Commerce Department reported  a 20% increase in April housing starts.

Oppenheimer's upgrade of Fifth Third(FITB) - Get Report on Tuesday is helping the sector, although Cramer said he prefers Keybank (KEY) - Get Report or First Horizon National(FHN) - Get Report over Fifth Third.

Cramer's also upbeat about MBIA's(MBI) - Get Report deal with Bank of America(BAC) - Get Report, saying, "People are going to be surprised at how well this MBIA deal is going to come."

At the time of publication, Cramer's Action Alerts PLUS had a long position in AAPL.