Cramer's Morning Take: Broadcom 6/5/25

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Jim Cramer (1:31)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. If you look at this chart of broadcom, you'll know exactly why I'm fearful. Okay, so this has been a remarkable stock, right? And throughout this period, we have decided that they were good. Now, what's interesting is right here of the big companies, there's a trillion-dollar coming. Right here, that was actually the worst of all of them in the sell-off.

Jeff Marks (1:56)

Call it down, yeah, down maybe 30% year-to-date at one point.

Jim Cramer (1:59)

Yeah, so you have a situation where it's bounced tremendously, but it has to put up a shoot the lights out number to be able to keep advancing.

Jeff Marks (2:07)

Yeah, that's the set-up question. But yeah, I mean, at that level, Hawk, they announced to his credit, Hawk Tan, $10 billion buyback he announced before the end of the year to be purchased by the end of the year. There was a huge statement.

Jim Cramer (2:20)

We bought a lot in August of 2023 when the stock took a, you know, periodically takes a hit. And what amazed me was that there was an individual board member that came in and buy a huge amount after the decline, and that was the tell.

Jeff Marks (2:38)

No, certainly one to always look for what they're doing there, the company, whether the company buying back stock, insiders buying back stock. But as for the quarter itself tonight, just expecting a strong ram from their AI customers, Google, Meta, those are the two big ones. Maybe some slight noise with ByteDance just given some of those sanctions in China. Earlier this week, they announced they started shipping its Tomahawk 6 switch. Why it's so important, it doubles the bandwidth of any Ethernet switch on the market, could drive more sales of their custom GPUs, and then of course, looking at the non-semi-business.

Jim Cramer (3:13)

Well, the software...

Jeff Marks (3:14)

Software as well.

Jim Cramer (3:15)

I keep waiting for it to kick in. Maybe it is this quarter.

Jeff Marks (3:18)

Yeah. So we'll see. Again, just can't love the setup, but like the long-term story there.

Jim Cramer (3:23)

Totally. Start your day with my out look on the market. Every morning, visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_5 (3:39)

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