Shortly after the opening bell, we will buy 50 shares of Broadcom at roughly $142.47. Following the trade, Jim Cramer’s Charitable Trust will own 700 shares of AVGO, increasing its weighting in the portfolio to 3.16% from 2.94%. The stock market is headed for another rough day as concerns about the economy grow. The July nonfarm payrolls report Friday morning added to these worries due to a miss on job gains and an unexpected jump in the unemployment rate to 4.3%. Inflation is coming down, to the credit of the Federal Reserve, but the recent string of weakening economic data has the market concerned that the U.S. central bank was too slow to cut interest rates. That is still up for debate. Fortunately, we built our cash up earlier this week with a handful of trims and sales. With our cash sitting around its highest level of the year, we have a little more protection to the downside and can be opportunistic on this weakness. We’re going to add to our position in Broadcom, buying back half the shares we sold in June at a split-adjusted price of $181. The stock has been hard since that sale, but Broadcom’s future is still a strong one as every single mega-cap tech company this week indicated that investment in artificial intelligence will be higher next year. That should be a tailwind to both its AI accelerator chip operations and its networking business, which helps stitch together the data center. Outside of AI, Broadcom stands to benefit from the next big iPhone upgrade cycle and cost synergies from the integration of its VMware acquisition. Plus, the stock isn’t that expensive, trading at around 26 times forward earnings, with growing cash flow that can support a small dividend yield and potential buybacks. In addition, we would be buyers of Advanced Micro Devices if we were not restricted. Intel ‘s horrible quarter Thursday night was confirmation that AMD is taking market share hand over fist. It’s possible those gains could accelerate in the quarters and years ahead. Analyst Ben Reitzes of Melius Research brought up a really good point in a research note Friday morning: Due to Intel’s problems with product reliability and execution, he said Dell and HP should want to work closer with AMD, leading to an acceleration of share gains in the future. AMD also reported a solid quarter Tuesday that the market hasn’t appreciated yet. CEO Lisa Su raised her outlook for MI300 AI sales to $4.5 billion this year, gave an upbeat view about the PC market later this year and into 2025 due to AI PCs, and indicated that its troubled industrial-focused business, known as embedded, is on track for a gradual second-half recovery. (Jim Cramer’s Charitable Trust is long AVGO and AMD. 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.
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