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Cramer’s New Preferred Chipmaker?

Cramer on Thursday thanked Steven in Connecticut, who called in during Tuesday’s “Lightning Round,” for introducing “Mad Money” to MIPS Technologies.

“This stock is now up 218 percent year-to-date,” Cramer said, “but you know what? I think it might not be done.”

MIPS develops semiconductor technology and then licenses it to other companies, who then build the chips we use in TVs, set-top boxes, home-office equipment and now smartphones. The company’s a lot like Cramer fave ARM Holdings , and it just reported a very strong quarter on Monday night.

Earnings came in at 17 cents a share when the Street expected just 10 cents. Revenues soared 50 percent from the year before, while licensing revenues leaped 70 percent. And full-year guidance beat the Street’s consensus as well. Plus, the company signs 10 new licensing deal, four of which were with brand-new customers. This is why MIPS shot up 32 percent on Tuesday to a new 52-week high. Luckily for investors, though, today’s action pulled it down 3 percent, offering them an entry point.

Cramer’s most excited about MIPS’s move into the cellar market. While most phones use only technology made by ARM, Google’s Android operating system can also run on MIPS. And the first MIPS-based phones are due in 2011. By 2013, the company plans on seizing 10 percent to 20 percent of the cellular processor market.

MIPS is cheaper than ARM, too, trading at just 24 times next year’s earnings compared to ARM’s 40 multiple. But before you jumped into the stock, Cramer wanted to talk with CEO Sandeep Vij to help you learn more about the company. Watch the video to see the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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