Jim Cramer's Mad Dash -- Ambarella Is 'Genius,' GameStop's Back in Play

NEW YORK (TheStreet) -- Everyone wants to put money to work wisely, said TheStreet's Jim Cramer. During CNBC's "Cramer's Mad Dash" segment, he said one place to wisely invest is Ambarella (AMBA). 

"This stock is genius," said Cramer, portfolio manager for Action Alerts PLUS. This small-cap semiconductor maker, which reports earnings Tuesday, is providing the chips that power the intelligence inside drones. 

But Cramer's enthusiasm for the stock goes beyond the growing use of drones in the Middle East. "Drones have become integral to the oil patch," he explained. "RBN Energy is talking about how oil companies are prospecting with drones. Drones are starting to become commercial."

AMBA Chart
AMBA data by YCharts

In other words, drones can find oil by scanning the topography, which in turn could make them an important component of oil exploration. "If you get a tear down a drone I bet you will see Ambarella," he said.

Another company that excites Cramer is GameStop (GME), which he said is back in play after the company said it earned 68 cents per diluted share for the quarter. This figure exceeded the 59 cents per share analysts had forecast.

"They're expanding stores," said Cramer, "and they have a close partnership" with Apple (AAPL), an AAP holding. In addition, GameStop is profiting because people are buying Sony's (SNE) PlayStation 4 and Microsoft's  (MSFT) Xbox.

Also, market dynamics may be a reason for the stock advancing. "This is a heavily shorted stock," he said, and any positive catalyst may trigger a short squeeze. In addition, the company is "buying back stock and they have a great balance sheet. I think it goes higher," Cramer concluded. 

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

If you liked this article you might like

How the Mighty Have Not Fallen: Cramer's 'Mad Money' Recap (Tuesday 11/28/17)

How the Mighty Have Not Fallen: Cramer's 'Mad Money' Recap (Tuesday 11/28/17)

The Best Cyber Monday Sales for 2017

The Best Cyber Monday Sales for 2017

Macy's Has Two Roads to Redemption

Macy's Has Two Roads to Redemption

Black Friday Online Sales Blow By $5 Billion as Shoppers Forget Stores Exist

Black Friday Online Sales Blow By $5 Billion as Shoppers Forget Stores Exist

10 Holiday Shopping Days Less Hectic Than Black Friday

10 Holiday Shopping Days Less Hectic Than Black Friday