We're pocketing a 170% gain on one stock and changing our rating on another

CNBC

27-05-2025

We are selling 50 shares of Broadcom at roughly $233. Following the trade, Jim Cramer's Charitable Trust will own 600 shares of AVGO, decreasing its weighting to 4.15% from about 4.5%. Stocks are surging Tuesday after President Donald Trump announced over the holiday weekend that he agreed to delay a 50% tariff on the European Union. Stronger-than-expected consumer confidence data also lifted stocks, especially those in the consumer discretionary sector. With equities rising across the board, we're taking the other side of the trade and using this strength to lighten up on our Broadcom position. Shares of this semiconductor maker and software company have come all the way back from their post-Liberation Day (April 2) lows and are now trading in positive territory for the year. The stock has also climbed 50% since the company announced a $10 billion share repurchase program on April 7, which was a clear sign of confidence in the company's future and that the sell-off was overdone. Although we continue to like Broadcom for the long term for its fast-growing AI business and VMware, we are downgrading our rating to a 2, meaning we would buy more shares on a pullback. From this sale, we will realize a gain of about 170% on stock purchased in August 2023. We're also increasing our GE Vernova price target to $500 from $460 to account for the recent momentum in its business. The stock has already blown past our initial $460 price target thanks to confirmation of our initial thesis that GE Vernova's gas turbine and grid technology business would become a beneficiary of trade deals. Also, Trump signed an executive order last Friday to boost the U.S. nuclear energy industry. But we are downgrading our GE Vernova rating to a 2. This downgrade does not reflect a shift in our long-term thesis on this energy equipment company, as outlined during our May Monthly Meeting on Wednesday . Instead, don't want to chase this move after the stock's double-digit gain to an all-time high since we initiated the position two weeks ago. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.