The CNBC Investing Club with Jim Cramer announced on Wednesday the sale of shares in semiconductor manufacturer Broadcom (AVGO). The transaction, involving 25 shares at approximately $388 each, was executed by Jim Cramer’s Charitable Trust, which disclosed the move to its subscribers.
The sale occurred on April 15, shortly after the market opened. Following the transaction, the Trust will hold 390 shares of Broadcom, reducing the stock’s weight in its portfolio from 4.3% to approximately 4%. According to the announcement, the sale results in a reported gain of 336% on shares that were purchased in September 2023. This marks the second time the Trust has trimmed its position in Broadcom this week.
The sale follows a significant increase in Broadcom’s stock price, which has risen approximately 25% in April. The stock’s movement coincided with several recent company announcements regarding strategic partnerships.
Earlier this week, Broadcom announced a multi-year partnership with Meta Platforms to supply custom chips for Meta’s Training and Inference Accelerator (MTIA) program through 2029. In its statement, Broadcom said the initial commitment exceeds one gigawatt of compute power and is the first part of a multi-year plan.
Last week, Broadcom disclosed a long-term supply agreement with Alphabet, extending through 2031, to provide custom TPUs and networking equipment. The company also announced an expansion of its supply agreement with artificial intelligence company Anthropic.
The Investing Club’s communication to its members also referenced a market indicator, the S&P Short Range Oscillator. It noted the reading reached 8.39%, a level that MarketEdge, the firm that provides the data, defines as indicating an overbought market. The communication cited historical data from MarketEdge showing that over the past 20 years, when the oscillator has exceeded 8%, the S&P 500 has, on average, returned 1.8% over the subsequent 30-day period.
