Shortly after the opening bell, we will sell 100 shares of Broadcom at roughly $367. Following the trade, Jim Cramer’s Charitable Trust will own 415 shares of Broadcom, decreasing its weight in the portfolio to about 4.3% from 5.3%. We laid out our plan on Friday to trim our position when we were no longer restricted from trading it. Shares are coming off a strong week, headlined by the chipmaker securing a long-term custom accelerator and networking supply agreement with Alphabet through 2031. The company also expanded its supply agreement with Anthropic to 3.5 GW TPU capacity beginning in 2027. The stock’s 18% rally last week made Broadcom our largest position in the portfolio. Historically, we have managed the Charitable Trust to prevent any single position from becoming too large, using a 5%+ threshold as the general guideline for taking action to right-size. It’s the same discipline we used last week when we trimmed Goldman Sachs. Despite reporting better-than-expected revenue and earnings per share in the first quarter, Goldman fell in pre-market trading after missing on closely watched fixed-income trading revenue. We’ll have more on Goldman later. We still have a positive long-term view on Broadcom, but after its recent run, we are downgrading our rating to a 2. From this sale, we will realize a gain of about 319% on Broadcom shares purchased in September 2023. (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.
We’re pocketing gains in this rallying chipmaker to right-size position
