CNBC Investing Club: Cramer’s Morning Take on Broadcom 4/7/26

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Jim Cramer (0:59)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10 20 a.m. Visit cnbc.com/morningtape to sign up today. That's one word morning tape.

SPEAKER_4 (1:21)

Well, there was a big deal announced last night between Broadcom and Alphabet. The two companies announced they entered a long-term agreement to develop and supply TPUs, that's the custom AI accelerators, for Google's future generation of TPUs. It's a supply agreement as well, Broadcom will be supplying networking and other components to be used in these next-gen AI racks through 2031 It really hits back at the bare thesis that has been building in Broadcom that yes, they have this big relationship with Google, but maybe Google would take away some share from Broadcom over time, maybe look at other partners, maybe do some their own custom tooling. So it pushed back on that and you can see Broadcom rallying. There was also an anthropic part of the equation as well. They're increasing their TPU capacity by half a gigawatt, and beginning in 2027 So good news on the Broadcom front.

Jim Cramer (2:20)

Yeah, it's funny. When I looked at Broadcom, I said, yeah, maybe go over Jeff to sell something because it's up big. But I know that we felt that it had already, if you go back to Broadcom, it had dropped a great deal.

SPEAKER_4 (2:30)

Yeah.

Jim Cramer (2:31)

And there was no reason. If you have Broadcom, it's down 100 points and it's starting to come back. The last thing you want to do is start selling it. That's when people say, you know what? This thing could really be on the warpath. It might move and of course that is the perfect reverse head and shoulders. So I come back and I say, don't sell it. This is when it's finally getting out of the problems it's been having.

SPEAKER_4 (2:52)

And last week when Marvell announced that partnership with NVIDIA, we did feel it was a move against Broadcom, a little bit of an incremental negative there.

Jim Cramer (3:03)

Yes, I thought so.

SPEAKER_4 (3:04)

But I think Broadcom, you know, locking up these deals with Google and maybe we'll see more with their other key customers.

Jim Cramer (3:09)

Yeah, and that's an important deal. Through four iterations, it's very, very good.

SPEAKER_4 (3:15)

More broadly, thinking about some of these semis, Broadcom down 6% year to date, NVIDIA trading at very cheap levels. I know Goldman strategists today, they were saying the underperformance of the tech sector is starting to generate attractive valuation opportunities.

Jim Cramer (3:34)

Wait, I mean, it's very easy to... All of these have the exact same shorts. Really, really extraordinary.

SPEAKER_5 (3:42)

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