On CNBC's "Mad Dash" segment Wednesday, Cramer, the portfolio manager of the Action Alerts PLUS portfolio, referred to Ambarella's earnings results as "stunning" after the company beat estimates for earnings per share and revenue expectations. Revenue grew 73.5% year over year.
Shares are up 7% on Wednesday following the earnings beat and have climbed a whopping 298% over the past 12 months.
Cramer said that management is bullish on several industries, including drones and surveillance. Ambarella, a supplier to GoPro (GPRO), also says that business is strong as well.
Despite Ambarella's current success, Cramer is shying away from the stock.
"I'm not saying to buy it," he said, explaining that after such an enormous rally, the stock may serve investors best by being a barometer of the market rather than a new holding in their portfolios.