We're right-sizing our position in an AI stock after its impressive run

We will sell 40 shares of Broadcom shortly after the opening bell at approximately $486. Following the trade, Jim Cramer's Charitable Trust will own 325 shares and its weighting will decrease from approximately 4.2% to 3.75%. Broadcom shares rose nearly 6% in premarket trading on Tuesday, extending a streak of new records in reaction to Alphabet's announcement Monday of an $80 billion equity raise to "fund investments in world-class AI computing infrastructure to meet unprecedented customer demand." This is great news for Broadcom, which powers Google Cloud by providing AI accelerators known as tensor processing units (TPUs). Alphabet's desire to tap equity markets rather than the usual debt markets signals it will likely spend more on artificial intelligence investments next year. In addition to the capital increase, Alphabet also increased its 2026 capital expenditure target from $180 billion to $190 billion. Broadcom's strong partnerships with Alphabet and many other major AI companies, including Meta Platforms, Anthropic, and OpenAI, should support a strong quarter and outlook when reporting earnings after Wednesday's close. However, due to our already sizeable position in Broadcom and its strong performance in print (up 38% since last earnings report), we choose to adjust the position and gain more than 430% on shares purchased in September 2023. (Jim Cramer's Charitable Trust is long AVGO. See here for a full list of stocks.) When you subscribe to the CNBC Investment Club with Jim Cramer, you'll receive an exchange. Jim, be warned before making a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.