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Cramer's Morning Take: Alphabet 4/9/24

Jim and Jeff discuss Alphabet on reports suggesting the company is developing its own in-house chips to cut costs associated with AI development. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Duration:
4m
Broadcast on:
09 Apr 2024
Audio Format:
mp3

Jim and Jeff discuss Alphabet on reports suggesting the company is developing its own in-house chips to cut costs associated with AI development. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake  

CNBC Investing Club Disclaimer

What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Hey, it's Kramer, and this is my morning take on the market from today's CBC investing club morning meeting. This is one of the wackier days I've seen, had a wacky squawk on the street, and that's in part because it's a better market. We have the yields okay, so you can be a little bit more upbeat CPI tomorrow. So we talk a lot about the team survey, of which I don't think people understand. This is a 6,000-person survey from Piper that historically has predicted an incredibly predictive of prices, and there are a lot of companies that we can talk about that have done very well, and some are not doing well. Otherwise Starbucks is wholly into the survey, Dutch pros moving up, but if you were in Nike, you have to sell. I mean, that's clearly what it says, underarm you have to sell. So anyway, that's some of the things we talked about, and then we talked about the making caps. But today's alphabet day, very significant day for alphabet. It's having a good day. They announced a new arm-based custom AI chip called Axion, like we made by Broadcom, and it follows Broadcom, or excuse me, Alphabet, Microsoft, Meta Amazon. They're all making these own chips, their own chips, some of them made by Broadcom, some by Marvell. And ours is in there, we know for Armcom. Yeah, they're all Arm-based. But as a way to do some reliance on NVIDIA AMD. NVIDIA is down because we're not talking enough about NVIDIA because these are companies that are trying to win themselves off of NVIDIA. Now, they can't. Yeah. But they can- Well, they need both. They need both. They need custom chips a little bit more specialized in their functions. Right, these are not CPU, GPU, they're CPU-based, a basic, but they are made specifically for Google. And NVIDIA does not do that, NVIDIA makes very big super computers, of which, by the way, Google's based on. So, I mean, that's not- Yeah, and this custom chip business for Broadcom, I think it's supposed to be $9 billion in revenues this year. I think it was significantly from the year before- But you broke that story last week. That story last week. You said point blank that this was happening. You remember we had- Yeah, they had their AI day, they talked about, they had expansion with Meta, Alphabet, but they also have a third customer as well. Many people think that's TikTok. But I think what's newer today, at least this is what JP Morgan's writing, is that these relationships are expanding and could sustain growth over the next couple of years for these custom chip businesses. But it's very important because Broadcom has grown on the basis of buying companies and firing people. This is actually about a technological edge, so it's different from Broadcom. And one that I think is more sustainable and more secular and less cyclical. So I think that's very positive. Start your day with my outlook on the market every morning. Visit cbc.com/morningtake to become a CNBC Investing Club member at a special rate today. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer. You seek the key, but first you must learn the ways of precision, craft, and performance with Acura's all-electric ZDX, with a premium bang and all-of-son sound system up to a 313-mile range and a type S variant with an estimated 500 horsepower, the ZDX is their most powerful SUV yet. Unlock the energy when you visit Acura.com to order yours today. [BLANK_AUDIO]