Cramer's Morning Take: Broadcom & Nvidia 9/9/25

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Jim Cramer (0:48)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. I think that Broadcom is now our largest PE company.

Jeff Marks (0:57)

It is, off of this huge surge the last couple days.

Jim Cramer (1:01)

And look, do we have personal pride in it? You bet. I mean, look, you're trying to figure out what you're doing in your life, and I'm talking, don't be existential with you and me, but we held on to this, and this is one, if you remember, we bought it in the end of September. I had had a hernia, and we were looking at the stock, and I just said, go buy, buy, buy, buy, buy, and you agree with me, and it was the last time it was downed. And then the insiders bought it incredibly.

Jeff Marks (1:27)

A couple years ago.

Jim Cramer (1:29)

It was actually three years ago, that's when we put the piece together.

Jeff Marks (1:31)

Yeah, and so, yes, what did Broadcom say Thursday night that has caused this big rally? Well, it's this acceleration in XPUs, that's the custom chips that they make for customers, widely believed to be Alphabet, Meta, ByteDance, and now even maybe OpenAI, as it was revealed last week. And the move in Broadcom, it is creating, re-sparking a debate between Broadcom versus Nvidia, the custom chips versus the GPUs. Citi today, they did, you don't see this too often in true court, but they lower the Nvidia price target by 10 bucks, so they maintain it by 200 bucks, it's about 20% upside from here. And they're basically, this is reflecting maybe a slight share shift to Broadcom and the accelerating year over year XPU growth. But, and maybe this is why Nvidia down four straight weeks entering today, down six of seven days entering today, but I mean, it's also had a pretty big run, so a pullback isn't completely out of the way.

Jim Cramer (2:32)

Look, when you finally get the price target and the stock goes up, what does that tell you? I don't know if we have a chart of Amazon right here, but I really want to explain something that's very, very confusing to a lot of people.

Amazon has, to some degree, abandoned Nvidia. They're just not using enough. And for Amazon Web Services, Amazon Web Services has fallen behind when it comes to Azure. This is something, if you go listen to Snowflake call, which Snowflake's doing quite well, it's very obvious. Now, why is it? Well, a lot of people feel that their Amazon Web Services, because it's got the tranium, the private label, so to speak, it's not as good as Nvidia. Now, I actually, I say the jury's out, but I think that Nvidia, in terms of total cost of use, the total cost of ownership, is much better than, because you have power considerations, much better than what the training, which is done at Broadcom, but I'm not gonna slam Broadcom, they got a good damn business.

Jeff Marks (3:30)

Yeah, Nvidia keeps pointing out, and this is in their conferences and earnings presentation, it's the price per performance that happens to them.

Jim Cramer (3:39)

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