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LivestreamMenuDon’t let Broadcom’s 15% post-earnings drop on Thursday fool you, says Jim Cramer: You want to own it. “Every time there’s been this kind of huge break in the stock, you have to buy it,” Jim said on ‘Squawk on the Street’ Thursday. However, Jim advised investors to wait a day or two to let all the sellers be flushed out and give the stock a chance to stabilize. Broadcom was red-hot coming into the print, up over 19% on the year and hitting a fresh closing high of around $481 Tuesday. That kind of set-up leaves little wiggle room: The company needed to do more than beat and raise to move the stock higher. But the earnings report , while strong, wasn’t enough to excite investors, who wanted to see management boost its AI revenue guidance — not just reiterate it. In for the quarter, delivered after the bell on Wednesday, Broadcom reported record AI semiconductor revenue of $10.8 billion, up 143% year over year and well above its guidance. For the 2026 fiscal year, Broadcom expects to hit AI semiconductor revenue of $56 billion, up about 180% from fiscal year 2025. “Now we expect this momentum to continue into fiscal year 2027 and reiterate our AI semiconductor revenue guidance to be in excess of $100 billion,” said Broadcom CEO Hock Tan on the earnings call. Tan added that the AI semiconductor strength should continue into fiscal year 2028, thanks to its six core customers, including recently expanded partnerships with Google , Anthropic, and Meta . Despite Broadcom reaffirming growing demand, Macquarie analysts downgraded Broadcom’s stock to a hold-equivalent rating Thursday, slashing its price target to $437 from $513. The analysts project Broadcom’s custom silicon revenue to peak in 2027 as Google diversifies beyond Broadcom as its sole custom chip partner . JPMorgan, however, raised its price target to $580 from $500 and reiterated a buy rating, noting that Broadcom’s expanding customer base should drive AI revenue growth in the years ahead, beating current estimates. BofA Securities, Raymond James, and KeyBanc also upped their price targets, among others. We trimmed the position on Tuesday, selling at around $480 per share, to lock in gains as expectations for Broadcom ahead of earnings ran high. Jim is now eyeing the opportunity to recoup some shares, especially if the stock trades even lower than its current levels. “We sold some Broadcom. I want to buy it back.” (Jim Cramer’s Charitable Trust is long AVGO. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club 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 about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.Read More
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