Shares of Broadcom (AVGO) came under pressure Tuesday, as investors likely cashed in after the stock surged to an all-time high. But with the Club holding set to significantly bolster its cloud software capabilities through a long-awaited acquisition, investors not yet in the stock should see the decline as a buying opportunity. Broadcom’s $61 billion stock-and-cash deal to purchase cloud software vendor VMWare (VMW) is set to close Wednesday, after Chinese regulators on Tuesday granted approval with a few strings attached. Those conditions include limitations on Broadcom’s ability to bundle its hardware and VMWare’s software in the Chinese market. Shares of Broadcom fell more than 1% Tuesday, to around $983.70 apiece. AVGO YTD mountain Broadcom (AVGO) year-to-date performance. “The people who are selling [Broadcom], what they are doing is they’re just saying, ‘This stock just went up 100 points in advance of this, so let’s lock in a profit,’” Jim Cramer said Tuesday. “I don’t think there’s anything wrong with Broadcom at all.” He added: “Let’s say you didn’t belong to the Club, and you were trying to figure out what name to work on, I would suggest you take a look at Broadcom.” Broadcom stock — which closed at an all time-time high of $995.71 each on Monday before pulling back Tuesday — has soared more than 80% since the semiconductor firm first announced the agreement to acquire VMWare in May 2022 . VMW YTD mountain Broadcom’s year-to-date stock performance. VMWare shares fell around 4.5% Tuesday, to $143.20 each, bringing the company’s stock closer to the cash-consideration level spelled out in the merger agreement . Broadly speaking, the deal entitles VMWare shareholders to receive $142.50 per share in cash, or have the opportunity to swap their stock for shares in Broadcom on a pro-rated basis. The Broadcom-VMWare deal had previously been scheduled to close Oct. 30, but was delayed while the companies awaited clearance from China’s competition…
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