Cramer's Thursday Watch: Snowflake Jumps 24%, Broadcom Guidance Disappoints, Nvidia to Buy Hugging Face

Broadcom reported quarterly results that beat expectations, but its revenue guidance for the current quarter came in below estimates, sending shares down 3%. Cramer said he had reduced his charitable trust’s position in the chipmaker by half ahead of the report and might need to hold the remaining stake. Chief Executive Hock Tan provided a large AI revenue outlook for 2028 on the earnings call, which Cramer described as an “overtime save” that took some sting out of the near-term disappointment. Bank of America lowered its price target to $460 from $530 while keeping a buy rating.

Snowflake was the day’s biggest earnings winner, with shares soaring more than 24% after the data-analytics software company delivered blowout quarterly numbers and guidance. Cramer cited strong momentum for its AI coding agent and said that in the age of AI, the consumption model for data is proving even better than the consumption model for the cloud.

Nvidia announced a $12.9 billion agreement to buy Hugging Face, a platform for open-source AI models. In a CNBC interview, Nvidia Chief Executive Jensen Huang confirmed that the company has a retention plan of up to $1 billion to keep Hugging Face employees, including its three founders. “The talent is everything,” Huang said. Cramer said the deal shows Nvidia’s CEO is putting his money where his mouth is on building an open-source ecosystem.

Server maker Hewlett Packard Enterprise fell 3% despite fiscal third-quarter earnings and revenue that topped consensus and a raised growth outlook for the next fiscal year. Cramer noted that HPE, like Super Micro and Dell, mostly sells Nvidia AI servers. Wall Street was split: Wells Fargo and Piper Sandler cut their price targets and stayed at hold, while Citi raised its target and kept a buy rating. He also pointed to Adobe, which Barclays lifted to a $295 price target from $250 with a hold rating. Cramer said Adobe had been beaten down by aggressive shorting in the “long hardware, short software” trade but is up more than 40% from its June lows.

Microsoft announced it will start reporting a quarterly revenue figure for its Azure cloud business. Cramer said Azure revenue came in at $29.4 billion last quarter, behind Amazon Web Services’ $42.2 billion but ahead of Alphabet’s Google Cloud at $24.8 billion, and that the breakout shows acceleration of the AI trade. Separately, The Wall Street Journal’s “Heard on the Street” column reported additional liabilities uncovered at Spirit AeroSystems, the fuselage supplier Boeing acquired in late 2025. Cramer attributed much of Boeing’s recent weakness to the impact of the Iran war on fuel prices, while saying such headlines do not help.

Elsewhere, Citi lifted its Oneok price target to $108 from $97 with a buy rating, citing the gas pipeline operator’s acquisition of Brazos Midstream assets. Rothschild & Co Redburn downgraded Moderna to sell from hold, arguing the market’s enthusiastic response to Moderna and Merck’s vaccine trial update has gone too far, since the trial only covers a subset of melanoma patients and there is little data for other tumor types.