9AM Hour: Broadcom Tumbles and Drags Down the AI trade, Dow Rallies, SpaceX IPO Roadshow 6/4/26

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Carl Quintanilla (0:50)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street.

Good Thursday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Market looks to rotate a bit at the open as Broadcom's quarter does disappoint, pulling down semis, CrowdStrike down double digits, Sienna down seven. This could be the Dow's best day against the Q's in more than a year. Oil's lower on hopes for more progress toward Neuron deal, although Hezbollah leadership today calls that Israeli Lebanon ceasefire, quote, shameless. A roadmap begins with Broadcom's brutal quarter, stocks down double digits in the pre-market, dragging down a lot of other high-flying tech names.

David Faber (1:39)

Plus, we're keeping an eye on the highly anticipated IPOs that are out there. Of course, SpaceX being number one, set to kick off its roadshow today. Anthropic, that could be a number of months from now. It does tap Morgan Stanley, it appears, at least according to reports, as its lead banker. And speaking of going public, Honeywell's spinoff, Quantinuum, is set to make its market debut today, that quantum computing company.

Pricing shares at 60 bucks. CEO will join us first on CNBC this hour.

Carl Quintanilla (2:08)

Let's begin with this rough morning for tech. Broadcom shares taking a hit on track to erase 300 billion in valuation. Could be a top three single stock market cap loss today. Polk Company posts a quarterly revenue miss, reiterates 2027 AI chip sales guidance. This is Hock Tan on the call last night.

SPEAKER_5 (2:27)

For the full year 2026, we expect to achieve AI semiconductor revenue of 56 billion dollars, up approximately 180% from fiscal 2025

Now, we expect this momentum to continue into fiscal year 2027, and reiterate our AI semiconductor revenue guidance to be in excess of 100 billion dollars. We expect AI semiconductor revenue growth to continue in fiscal 2028, based on the following initiatives with our six core customers.

Carl Quintanilla (3:14)

So Jim, with a 15% of clients, we're only going to take it back a week or so.

Jim Cramer (3:18)

Wait a minute, let's keep that perspective. I mean, we sold some stock for the club the other day, just because we said, look, this was an unnatural parabolic move. Now, was the quarter as bad with guidance as bad as people think? Well, people hoped he was going to raise it more than $100 billion. I've known Hawk for a long time, and Hawk likes to be very realistic. He doesn't want to take something up so that in the next quarter he misses. That's fine. I mean, David, you know that Hawk Tan is unique in the sense that periodically, we had this in August a couple years ago.

David Faber (3:47)

Yes.

Jim Cramer (3:47)

He just likes to speak as it is, but he doesn't want to ever create expectations.

David Faber (3:52)

True.

Jim Cramer (3:53)

And I don't think that you can conclude from this that there's really something wrong. I do think that people are going to look at it and think something's wrong.

David Faber (4:03)

Well, there does appear to have been an expectation, as you just said, that the guidance would be raised above $100 billion for this all-important AI semiconductor revenue for fiscal year 2027

Jim Cramer (4:16)

It calls into question a lot of things.

David Faber (4:18)

And I would come back to what I would argue is still the most important news event of the week, which is that Google raise. Not because of the raise itself, because what it said. What it said is Google said, we don't have enough money. We need even more than the $190 billion in CapEx we're targeting this year, than the $250 billion in EBITDA that we're going to be generating roughly. We need even more.