tech
Jim Cramer sees an opportunity in Broadcom's 15% plunge, with one key caveat
"Every time there's been this kind of huge break in the stock, you have to buy it," Jim said.
TL;DR
- Broadcom's stock fell 15% after reporting earnings, despite exceeding AI semiconductor revenue expectations.
- The company reaffirmed its AI semiconductor revenue guidance for fiscal years 2026 and 2027, exceeding $100 billion for 2027.
- CEO Hock Tan anticipates continued AI semiconductor strength through fiscal year 2028, supported by six core customers.
- Analyst opinions are mixed: Macquarie downgraded the stock to a hold-equivalent rating, while JPMorgan and others raised price targets.
- Jim Cramer considers the stock drop a buying opportunity but suggests waiting for stabilization, as he plans to buy back shares after selling some earlier.