2024-02-26 13:46:57 ET
Famed investor Jim Cramer is bullish on a deal Broadcom Inc (NASDAQ: AVGO) announced this morning with KKR – a private equity firm.
Broadcom to sell its EUC unit to KKR
Broadcom agreed to sell its end-user computing (EUC) business to KKR for $4.0 billion on Monday.
Shares of the semiconductor company popped more than 1.0% today to print an all-time high and the Mad Money host expects them to move further up in the coming months.
Cramer is bullish on the Broadcom-KKR deal as it helps the chipmaker streamline its portfolio following its over $60 billion acquisition of VMware in 2023.
Note that the famed investor has been constructive on for the longest time. His Charitable Trust does have a position in the Nasdaq-listed firm that has more than doubled in the trailing twelve months.
Watch here: https://www.youtube.com/embed/Tfvob4ssfBM?feature=oembedBroadcom-KKR deal will help reduce debt
Jim Cramer is bullish on the $4.0 billion Broadcom-KKR deal also because it will help the multinational to lower the debt on its balance sheet.
Hock Tan – the chief executive of recently announced plans of “aggressively” buying back stock; and unloading the EUC unit will enable the California-based company to do just that, he added.
Broadcom CEO Hock Tan is joining Meta’s board of directors.
— Beth Kindig (@Beth_Kindig) February 23, 2024
Broadcom is one of Meta’s key partners in its effort to develop its own custom AI chips, with Meta paying around $500M last year for such services.
The Mad Money host is positive on Broadcom Inc also because it partnered with Nvidia Corp on developing silicon photonics last year.
Broadcom shares currently pay a dividend yield of 1.60% that makes up for another good reason to have it in an investment portfolio.
The post Jim Cramer is bullish on the $4.0 billion Broadcom-KKR deal: here’s why appeared first on Invezz