NEW YORK (TheStreet) -- Shares of Ambarella Inc (AMBA) were soaring, higher by 7.1% to $110.67 on heavy volume in late morning trading Monday, after Jim Cramer explained that the semiconductor manufacturer is the drone play on CNBC this morning.
"This is the brains behind GoPro (GPRO) - they make the chip," Jim Cramer said on CNBC's Stop Trading segment earlier today.
"What really dazzled people on the call, once they started listening to it, is drones. People are underestimating drones. Ambarella is the brains behind drones, " Cramer added.
He believes drones are gigantic and commercial, and noted that Ambarella is the drone play which is why the stock is moving higher.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio noted, "This company's not just about the GoPro. It is about drones. It is entering cult status and I say enjoy it while it lasts."
Last Tuesday, Ambarella reported first-quarter fiscal 2016 earnings after the closing bell. Earnings per share came in at 72 cents, beating the 59 cents per share analysts polled by Thomson Reuters were expecting.
Ambarella reported revenue of $71 million, ahead of the consensus estimate of $67.4 million.
About 2.32 million shares have changed hands as of 11:29 a.m. ET today, compared to its average trading volume of about 1.93 million shares a day.
Santa Clara, Calif.-based Ambarella is a developer of semiconductor processing solutions for video that enable high-definition, video capture, sharing and display.
The company's system-on-a-chip designs HD video processing, image processing, audio processing and system functions onto a single chip, delivering video and image, according to Reuters.