Squawk on the Street CNBC Investing Club: Cramer’s Morning Take on Broadcom 4/7/26
Apr 7, 2026
Discussion centers on Broadcom’s major pact to supply next‑generation TPUs and networking to Alphabet through 2031. Debate over whether to hold or sell the semiconductor stock after the deal. Comparison of competitive moves like Marvell and NVIDIA and what they mean for market positioning. Broader talk on semiconductor valuations and sector outlook.
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Broadcom Locks Long Term TPU Supply With Google
- Broadcom secured a long-term TPU development and supply deal with Google, plus supply of networking components through 2031, reinforcing its AI infrastructure role.
- The agreement rebuts fears Google would cut Broadcom out and coincides with Anthropic expanding TPU capacity by 0.5 gigawatt starting 2027.
Avoid Selling Into Broadcom's Rebound
- Do not sell Broadcom after the rally; Jim Cramer warns selling into a rebound risks missing a sustained move higher.
- Cramer notes Broadcom fell sharply before and now shows a reverse head-and-shoulders pattern signaling a breakout.
Sector Underperformance Creates Valuation Opportunity
- Marvell's recent partnership with NVIDIA was an incremental negative for Broadcom, but Broadcom's new deals may offset that competitive pressure.
- Analysts see semiconductors underperforming yet creating attractive valuations, with many stocks showing similar chart setups.