Cramer's Morning Take: Broadcom 5/28/25

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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. This is one of those days of where when I got in, Nvidia was up a dollar, and everything looked great, and I urged people never to trade in the early morning markets because of exactly what we're seeing now, which is people are a little more nervous. You get a big day yesterday, you get profit today.

Carl Quintanilla (1:25)

Yeah, really big day yesterday, market rally, 2%. That was in reaction to President Trump delaying that 50% tariff on the EU. He threatened on Friday. You also had better than expected consumer confidence. It was the first increase in many months, I think five months, which it was just much needed in the soft data there because confidence has been a little bit weaker due to the trade war.

But yeah, you had a big move yesterday. We did take a little bit off the table to book a small broadcom sale.

Jim Cramer (2:00)

Our strategy in a plus 800 is that we better find something to sell. That is just, that's called discipline and we have it. I will say that when I look at what we saw, there were two analysts who pushed Broadcom today and we trimmed some Broadcom. We trimmed it in part because look, what they're saying is what we said.

Carl Quintanilla (2:21)

It came all the way back, yeah. No, absolutely. And the two analysts, one was Mellius. They raised it to 283 Just talking about, still has room to run as the custom AI accelerator customer count increases from three to seven. They also point out CapEx not slowing from two of their biggest customers, Google and Meta. Spent some time also talking about how great the VMware deal has been.

Jim Cramer (2:45)

This is software.

Carl Quintanilla (2:46)

The cash flow, the buybacks.

Jim Cramer (2:48)

We want high price journeys, multiple businesses software, is that? It's also recurring.

Carl Quintanilla (2:53)

Yes. Sticky.

Jim Cramer (2:54)

I think people need to know this is $1.1 trillion company. A lot of people feel it's an obscure company. Well, it's not. You can't obscure a 1.1 trillion company. I think a lot of analysts are not covering it correctly. Don't realize how the model is so powerful. Don't realize how when you have a GPU, you need theirs.

Carl Quintanilla (3:11)

Yeah, I know. Networking and also the custom accelerators as well. But why don't we circle back to NVIDIA, spend a little bit more time on that, because they do report earnings tonight, and you're going to have Jensen Huang on Mad Money later. What are you thinking about asking him maybe some high level things? Obviously, we're looking at Blackwell demand.

Jim Cramer (3:33)

See, I think that at the highest level, you have to ask, is this always just going to be a hyperscaler story, or are we going to see every country really spend a fortune at a lot of UAE, the Saudis? I also want to know whether China is open and closed. Is that just the door closing that? 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.

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All of the news 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.