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) 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), which is involved in a deal with fellow Apple  (AAPL - Get Report) supplier Skyworks Solutions (SWKS), 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.