Sell 25 shares of Broadcom stock at approximately 418.57. Following the transaction, the Jim Cramer Charitable Trust will own 365 shares of AVGO stock, reducing its weight in the portfolio from 4.30% to approximately 4%. Semiconductor stocks are having another good day on the market thanks to Intel’s positive comments about central processing unit (CPU) demand in the age of agent AI. The Philadelphia Stock Exchange Semiconductor Index, also known as SOX, went completely parabolic, extending its rally into 18 consecutive sessions. It increased by about 50% in this section. We’re not trying to chase semiconductor stocks after a rally of this size. Instead, we are lightening some of our large positions and securing significant profits in the process. On Thursday, the company reduced its stake in Qnity Electronics, a key materials supplier to the semiconductor industry. Around the time of our sale, Qnity’s stock price was up 78% year-to-date. On Friday, we cut our position in Broadcom for the third time in the past two weeks. Broadcom didn’t participate in Friday’s rally, but the stock is still riding high on a strong week, with shares up about 2%. Broadcom is up about 5% since its last sale on April 15th. Jim said in his monthly meeting a week ago that he wanted to get rid of even more stock on the next 5% move, and here we are. The cash raised from this sale will help support further purchases of stocks that have fallen out of favor. Chips consume a lot of oxygen in the market, and we are reaping the benefits through a number of positions. But money from other companies with strong prospects could create opportunities to buy up more shares at attractive prices. This Broadcom sale will realize a 375% gain on the stock purchased in September 2023. (Jim Cramer Charitable Trust is long AVGO and Q. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
