Having already jumped to new highs last week following its FQ1 beat and strong FQ2 outlook, Ambarella (NASDAQ:AMBA) is up sharply again today after Jim Cramer declared on CNBC (video) the company is a drone play.
Cramer: "People are underestimating drones ... I think drones are gigantic and commercial ... Ambarella is the drone play, and that's why that stock is going up. Is it expensive? Completely! But as people recognize, it's not just a one-trick pony for GoPro..."
Many sell-side firms talked up Ambarella's drone opportunity last week after the company stated on its FQ1 CC it expects drone-related video processor sales to account for over 10% of FQ2 revenue.
A short-squeeze may be at work: 7.4M shares (27% of the float) were shorted as of May 15.
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