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Squawk on the Street

Cramer's Morning Take: Broadcom 12/17/24

Dec 17, 2024
Cramer discusses the recent 38% surge in Broadcom's stock and the Club's decision to cash in on those gains. Insights from the CEO provide an optimistic outlook on market opportunities. The conversation underscores the need for disciplined stock management, especially in the tech sector. Key players like NVIDIA, Broadcom, and AMD are analyzed, offering valuable strategies for investors navigating this competitive landscape.
03:27
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Podcast summary created with Snipd AI

Quick takeaways

  • Cramer recommends selling Broadcom after its substantial stock rise, stressing the importance of disciplined investing amidst market volatility.
  • The podcast highlights the shift towards custom chips by tech giants, emphasizing the competitive landscape and the need for firms to innovate.

Deep dives

Market Insights and Investment Strategies

Current market dynamics indicate notable trading activity, particularly with companies like Broadcom, which experienced a parabolic rise in stock price. A bullish outlook was provided by CEO Hock Tan, highlighting the company's leading position in a significant market projected to be worth up to $90 billion by 2027, driven by custom chip demands from AI customers. Despite substantial gains, including a 190% rise on stock purchased in August 2023, there’s an emphasis on exercising discipline and prudence, reflecting the importance of right-sizing portfolios amidst rapid stock movements. The discussions underline the necessity for investors to balance profit-taking with maintaining a diversified portfolio, ensuring they don't become overly greedy in the face of successful investments.

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