Cramer's Morning Take: Broadcom 3/7/25

SPEAKER_1 (0:00)

Are you still quoting 30-year-old movies? Have you said, cool beans in the past 90 days? Do you think Discover isn't widely accepted? If this sounds like you, you're stuck in the past. Discover is accepted at 99 percent of places that take credit cards nationwide. And every time you make a purchase with your card, you automatically earn cash back. Welcome to the now. It pays to Discover. Learn more at discover.com/creditcardbased on the February 2024 Nelson Report.

SPEAKER_2 (0:28)

Is it time to reimagine your future? The right business skills may make a difference in your career. At Capella University, we offer a relevant education that's designed to focus on what you need to know in the business world. We'll teach professional skills to help you pursue your goals, like business management, strategic planning and effective communication. And you can apply these skills right away. A different future is closer than you think with Capella University. Learn more at capella.edu.

Jim Cramer (1:01)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

We had a jobs number that I thought was about as perfect as you can get, that's no recession and no inflation. The average hourly earnings were really terrific because it showed you that the Fed may have to not worry about this particular part of the problem. Instead, what happens is people just sell. I think that there's a mistake. I think there are things to buy and we're going to go over them.

Jeff Marks (1:30)

Yeah. Look, we've had a couple of attempts at a rally, not oversold as much as we'd like, minus 4.8 on the oscillator. Really want to see 5, 6, 7 to really get that strong sustainable balance.

Jim Cramer (1:43)

You get the whoosh and crescendo best. Selling, we haven't had that.

Jeff Marks (1:47)

But the jobs report itself, I'd call it not as bad as feared. It was a miss, 151 versus 160 expected. The unemployment rate ticked up from 4%. Average hourly earnings, 4%. That's actually a tick below expectations. Health care, financial activities, transportation added. Federal government down 10,000 as expected.

People think March, you'll see more of the Doge impact. But again, I think considering some of the weak data that we've seen, we know February has been a very bad month for weather.

Jim Cramer (2:20)

That's something about the way the Costco side, but it really didn't matter. I want to go over Broadcom first. Look, this was about as phenomenal quarter. The fact that it's barely up, the fact that they're going to take it probably unchanged. This is just pressure from people selling semiconductor and the SMH. People believe the semiconductors are awful. They think that this is, they're being very, I would say, judgmental in selling all because this was one of the best quarters I've ever seen. And that won't last. People will come back to this. So my advice is wait till they take it to unchanged or even to 182, 83 if you don't own the stock. I need you to pounce on the stock.

Jeff Marks (3:01)

Yeah, I mean, when it was at 200 last night, didn't think it was ready to buy. It was just up a little bit too much. There's so a lot the market needs to figure out with deep seek and the state of spending. But when you look at the quarter, AI revenues above what they guided to, 4.1 billion, first guide of 3.8, and it's increasing sequentially to 4.4. And then they're talking about adding two additional hyperscale customers for their custom chips. That's on top of the two they were engaged with last quarter and the three that they're currently shipping in volume to. So, maybe seven, I mean, that's a very good, strengthens the long-term outlook.

Jim Cramer (3:36)

This company could be selling it 20 times next year's earnings. It's incredibly cheap. I can't be sanguine about it because I know that, I know this group, I know how it should trade, and I know that there's no, absolutely no hope right now. And a lot of that's just video no hope, a lot of that is Dell being brought down by HPE, down to 90 I mean, we're just seeing just wholesale destruction. I don't want anyone to get into a wholesale destruction situation, which is why I'm saying wait till this is down, and then you get that quarter for free, and that would be really remarkable.

Start your day with my outlook on the daily market every morning at 10:20 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_5 (4:27)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC, NBC Universal or their parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club Disclaimer, please visit cnbc.com/investingclubdisclaimer.