Squawk on the Street Cramer's Morning Take: Broadcom 6/5/25
6 snips
Jun 5, 2025 The discussion focuses on the volatility of Broadcom's stock and its recovery potential amid fierce competition. Key insights reveal insider confidence through a significant buyback initiative. Anticipation builds around strong AI demand from major players like Google and Meta, while addressing challenges from ByteDance's sanctions. Innovations in bandwidth technology, especially the promising Tomahawk 6 switch, could enhance sales of custom GPUs, offering a bright future for Broadcom.
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Broadcom's Stock Vulnerability
- Broadcom's stock, despite a remarkable run, showed vulnerability during the market sell-off when many big tech stocks fell too.
- It needs to exceed earnings expectations ('shoot-the-number') to regain upward momentum.
Broadcom Buyback Confidence
- Broadcom announced a $10 billion buyback that was completed within the year, signaling confidence.
- An individual board member bought a significant amount of stock after a decline, a strong insider signal.
Use Buybacks as Signals
- Monitor insider and company stock buybacks as signals of confidence or opportunity.
- Buying during periodic stock hits can be a strategic entry point.