Cramer Sees 'Huge Move' for Snowflake, Gives Broadcom a Cautious Grade

Jim Cramer anticipates a significant shift in Snowflake shares following an exceptional quarter. For Broadcom, his assessment was considerably more guarded.

The CNBC commentator gave his views after the two firms released results. Both Snowflake and Broadcom beat expectations, but just one received outright approval within the AI sector.

After an Outstanding Quarter, Jim Cramer Delivered His Verdict on Snowflake

Snowflake recorded product revenue of $1.49 billion in its fiscal second quarter, a 37% increase year-over-year. Adjusted profit reached $0.62 per share.

The company raised its full-year product revenue forecast to $6.07 billion. The stock surged 23.27% to $377.00 in pre-market activity, up from Wednesday’s closing price of $305.84.

In the five trading days leading up to the announcement, shares had declined 7.4%.

Cramer mentioned the stock's valuation alongside the earnings beat. He described it as the simplest vehicle for cautious companies to purchase computing power as needed.

So Snowflake remains the best way for the uncertain to get compute but Broadcom tells a story of an explosion of business coming. Snowflake will have a huge move…. Broadcom? More nuanced…

— Jim Cramer (@jimcramer) September 3, 2026

His positive sentiment represents a change. The previous week, he commended Marvell’s performance but cautioned that its share price had already advanced excessively.

Broadcom's AI Revenue Tripled, but Wall Street Remains Cautious

Broadcom reported $16.7 billion in AI chip revenue, a 221% increase. Overall revenue climbed 86% to $29.6 billion, with adjusted earnings of $3.32 per share.

CEO Hock Tan forecast fourth-quarter AI revenue of $21.7 billion. He has arranged supply to approximately double AI sales to around $115 billion in fiscal 2027.

Tan outlined a trajectory to $230 billion in fiscal 2028. Nevertheless, investors remained unimpressed.

Cramer acknowledged the increased guidance but subsequently tempered his outlook.

Hock giving you some nice raises for next year and the year after. That’s what we have been looking for. Maybe i am too hopeful… Small position for the trust…

Jim Cramer, post

The trust refers to his CNBC Investing Club portfolio.

The total fourth-quarter forecast of $34.8 billion came in slightly below expectations. Shares fell 2.58% to $357.76 in pre-market trade, adding to a 4.5% monthly drop.

Pre-earnings analyst projections were already strongly optimistic, leaving limited scope for a positive surprise.

AMD’s share decline after its August results illustrated how quickly solid chip figures can turn into a letdown.

Cramer's divided opinion sets a clear challenge. Snowflake must convert AI demand into profitability, whereas Broadcom needs to validate Tan's projections for 2028.