Shortly after the opening bell, we will sell 40 shares of Broadcom at roughly $486. Following the trade, Jim Cramer’s Charitable Trust will own 325 shares, decreasing its weighting to 3.75% from about 4.2%. Broadcom shares are up about 6% in pre-market trading on Tuesday, extending a run of new record highs, in reaction to Alphabet announcing an $80 billion equity raise on Monday to “fund investments in its world-class AI compute infrastructure to meet its unprecedented customer demand.” This is great news for Broadcom, which powers Google Cloud by providing AI accelerators, known as tensor processing units (TPUs). Alphabet’s willingness to tap the equity markets rather than the usual debt markets signals it will likely spend even more on AI investments next year. Alongside the capital raise, Alphabet reiterated its 2026 capex guidance of $180 billion to $190 billion. Broadcom’s strong partnerships with Alphabet and several other major AI companies, including Meta Platforms , Anthropic, and OpenAI, should support a strong quarter and outlook when it reports earnings after the close on Wednesday. But due to our already outsized position in Broadcom and the solid run it has had into the print — up 38% since its last earnings report — we’re electing to trim the position and realize a gain of more than 430% on stock purchased in September of 2023. (Jim Cramer’s Charitable Trust is long AVGO. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
We’re right-sizing our position in an AI stock after its impressive run
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