Michael Mann 
We are buying 50 shares of Broadcom at roughly $164.92 each. Following the trade, Jim Cramer’s Charitable Trust will own 750 shares of AVGO, increasing its weighting to about 3.50% from about 3.25%. We’re nibbling on Broadcom shares, buying back the second half of the 100 shares we sold in June at a split-adjusted price of $181. The first 50 shares were repurchased in early August . Broadcom is our second favorite AI play behind Nvidia . Like most chip stocks excluding Nvidia, Broadcom has fallen from its recent highs. Shares of this AI chip designer and software company have pulled back nearly 12% since closing at a high of nearly $186 apiece on Oct. 9. That’s created what we see as a long-term buying opportunity. The reason why we are adding to our position Thursday – and violating our average cost basis of $90.08 – is because of Nvidia. As it has in recent quarters, Nvidia on Wednesday night delivered better-than-expected results , provided guidance above the consensus, and gave bullish commentary about the future of AI spending. As we pointed out in our story, a new worry in the investment community was that the quality of AI models was not improving as much as expected despite additional computing resources. It’s what is known in the tech industry as “scaling.” These fears led many to believe that the biggest tech companies would pull back on their AI hardware investments, causing the industry to go through a digestion phase. Nvidia CEO Jensen Huang pushed back on this idea pretty forcefully on the earnings call, and the company signaled that Blackwell demand is expected to exceed supply for several quarters in fiscal 2026, which begins in earnest in February. With the pace of AI investment still robust, we think Broadcom’s nearly 12% pullback from its high is a good level to boost our position and repurchase stock we sold much higher. (Jim Cramer’s Charitable Trust is long AVGO and NVDA. 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.
