Squawk on the Street Cramer's Morning Take: Broadcom 5/28/25
May 28, 2025
Cramer shares insights on why the Investing Club reduced its stake in a prominent chipmaker. The discussion dives into the recent market rally and emphasizes strategic trading and risk management amid geopolitical uncertainties. There's a spotlight on a tech giant poised for growth with rising demand for AI accelerators. The hosts also cover exciting developments such as new client contracts and anticipated earnings reports, while linking these trends to the global tech landscape.
AI Snips
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Episode notes
Avoid Early Morning Trading
- Avoid trading in the early morning markets due to nervous volatility.
- Take profits after big market rallies to manage risk effectively.
Broadcom's Underestimated Strength
- Broadcom is a $1.1 trillion company with a powerful business model.
- Many analysts underestimate its importance and growth potential, especially in AI accelerators.
Broadcom's Growth Drivers
- Broadcom benefits from rising custom AI accelerator customers and sustained spending by Google and Meta.
- The VMware acquisition boosts cash flow and share buybacks, supporting its valuation.