Cramer Trims Broadcom, Says GE Vernova Could Be Next AI Cut

Jim Cramer cut his Broadcom (AVGO) position Monday, telling CNBC Investing Club subscribers the AI data-center trade is "currently broken" as the buildout turns into a politicized election issue. He said GE Vernova could be next in line for a trim.

The move came as Micron tumbled more than 5.5% on social media speculation that President Donald Trump may let Apple buy memory chips from Chinese suppliers for devices sold in China. The broader AI theme has become a political football, Cramer said.

The S&P 500 and Nasdaq fell slightly Monday, with lower-moving Treasury yields unable to offset a decline in memory names including Micron. Cramer said the market has turned against some of the hottest AI and tech stocks.

"This is a Coca-Cola, J&J market," Cramer said, pointing to the defensive rotation. He told subscribers the trust had "lightened up on some of our AI stocks, beginning with a big cut in Broadcom." Investors might be able to buy AI stocks after the midterm election, he said, "but I don't want to sit here and just take pain." He repeated the phrase "I don't want to sit here and just take pain" in the livestream.

GE Vernova, which makes natural gas turbines for off-grid data center power, could be the next trim. "GE Vernova is at the center of it all," Cramer said, adding an argument could be made to reduce the position.

CrowdStrike reports earnings Wednesday evening. Cramer said he feels "very good" about the stock into the print despite the departure of its chief technology officer. He also said he feels "very good" about Salesforce, which reports the same day.

"Strangely, I feel very good about Salesforce [too]," Cramer said. The stock is up over 40% from its 52-week low in late June.

At the end of the rapid-fire segment, Cramer covered Jersey Mike's Subs, Cava, Brinker International, Dutch Bros, Chipotle, Domino's Pizza, and Starbucks.

No further details were provided on the other positions.