Immediately after the opening bell, you sell 40 shares of Broadcom stock for approximately $486. Following the transaction, the Jim Cramer Charitable Trust will own 325 shares, reducing its percentage from approximately 4.2% to 3.75%. Broadcom shares rose about 6% in premarket trading Tuesday, continuing to hit record highs after Alphabet announced an $80 billion equity raise on Monday to “fund investments in world-class AI computing infrastructure to meet 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 use the stock market rather than the traditional bond market suggests it will likely spend even more money on AI investments next year. Alongside the capital raise, Alphabet reiterated its 2026 capital spending outlook of $180 billion to $190 billion. Broadcom’s strong partnerships with Alphabet and several other major AI companies, including Metaplatform, Anthropic, and Open AI, should support a strong quarter and outlook when it reports earnings after the close on Wednesday. However, given our already large position in Broadcom and the solid performance in print, up 38% since the last earnings report, we have decided to reduce our position and realize a return of over 430% on the stock purchased in September 2023. (The Jim Cramer Charitable Trust is long AVGO. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you receive the following benefits: Trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
