The overall market might be lower Thursday but shares of Avago Technologies (AVGO - Get Report)  jumped nearly 10% after beating earnings per share estimates for the most recent quarter. 

There's a "high quality problem" developing and that's too much demand for the company's enterprise storage chips, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Avago has been focusing on these chips to diversify away from its dependency on smartphones, Cramer explained. Cramer has said there is a "quiet bull market" developing in the semiconductor stocks, and Avago is just the latest example.

AVGO Chart
Avago Technologies AVGO data by YCharts

Avago's coming merger with Broadcom (BRCM) will also help diversify its revenue stream, he added. 

Shares of Avago popped higher following the earnings results, but it was the conference call that was really the catalyst for the stock to jump, Cramer said. 

Before the semiconductor stocks took a nosedive, Avago had been a strong leader for the group. But now the stock is back, approaching its 52-week highs, while many of the other stocks have been trading higher over the past few weeks, too, Cramer added. 

For example, by refusing to get into a bidding war for its planned acquisition of PMC-Sierra  (PMCS) , Skyworks Solutions (SWKS - Get Report) instead made a big "statement" by buying back its stock, which had sold off precipitously over the past few months, he said. 

 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.