We're trimming this red-hot tech stock and pocketing a 238% gain — here's why
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We're trimming this red-hot tech stock and pocketing a 238% gain — here's why

Why This Matters

This sale doesn't reflect any change in our positive view on the stock.

August 6, 2025
03:59 PM
2 min read
AI Enhanced

We are selling 25 s of Broadcom at roughly $299. ing the trade, Jim Cramer's Charitable Trust will own 550 s of AVGO, decreasing its weighting to 4.5% from 4.7%.

This sale doesn't reflect any change in our positive view on Broadcom. We the semiconductor and software company's AI , which features both custom AI accelerators and networking equipment.

However, it's hard to see the 7% drop in Advanced Micro Devices on Wednesday — despite what we viewed as a solid quarter and upbeat guidance — without feeling some concern fit-taking in these red hot AI chip stocks after earnings.

After all, that's been one of the major themes of second-quarter earnings season: results not living up to investors' lofty expectations. Broadcom is expected to report its results on Sept. 4.

Broadcom s are up 28% year to date and have rallied 10% since our previous sale in July, including a 2% bump today. This trim will help ensure we're not being too greedy.

From this sale, we will realize a gain of roughly 238% on stock purchased in August and September 2023. (Jim Cramer's Charitable Trust is long AVGO.

See here for a full list of the stocks.) As a r to the CNBC with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

If Jim has talked a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

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NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION VIDED IN CONNECTION WITH THE . NO SPECIFIC OUTCOME OR FIT IS GUARANTEED.

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  • Earnings performance can signal broader sector health and future investment opportunities

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