You know that feeling when a friend aces every exam, lands a dream job offer, and somehow still can’t catch a break? That’s the market handing CrowdStrike Holdings (CRWD) and Broadcom Inc. (AVGO) their report cards right now.
Both companies just delivered earnings that would make most CEOs weep with joy. Record revenues. Crushed estimates. Raised guidance. The kind of numbers that are supposed to send stocks soaring.
Instead, both stocks slid. Hard. CNBC’s “Mad Money” host Jim Cramer thinks he knows exactly why, and his explanation has nothing to do with the companies themselves.
It has everything to do with where the money is going next. Cramer explained it with a June 4 post on X (the former Twitter).
They want the money for SpaceX/Anthropic.
Jim Cramer says AVGO stock and CRWD stock sellers aren’t done yet
“People are probably wondering why CrowdStrike’s and Broadcom’s stocks seem to stop at these levels,” Cramer shared in the X post.
“The answer lies in panic and fear. The sellers just want these stocks off their sheets. They are prepared to sell it lower than this. Don’t count on the sellers to stop here.”
More AI:
- Micron sits at the center of a red-hot chip rally
- IBM CEO sends blunt message on AI and quantum computing
- Anthropic CEO makes shocking admission about AI
That last line is the one worth sitting with. Cramer isn’t saying these are bad companies. He’s saying the selling isn’t about fundamentals at all but about rotation.
Investors are liquidating winning positions to free up cash for two of the most anticipated public offerings in years: SpaceX and Anthropic.
Also Read: Broadcom Inc. Latest News
AVGO closed the earnings week ended June 5 down about 7.92%, according to Yahoo Finance, settling at $385.73. CRWD finished the same week down about 6.68%, closing at $671.02, Yahoo Finance confirmed.
For context, AVGO had surged as high as $479.23 on June 3 — earnings day — before plunging roughly 13% in after-hours trading alone, as reported in my previous AVGO report.
Broadcom’s AI semiconductor business just hit a new ceiling
The numbers Broadcom reported on June 3 were, by almost any measure, extraordinary.
Key Broadcom stock Q2 fiscal 2026 highlights included:
- Total revenue of $22.19 billion, up 48% year over year (YoY)
- Artificial intelligence (AI) semiconductor revenue of $10.8 billion, up 143% YoY and above the company’s own forecast
- Free cash flow of $10.26 billion, a record, equal to 46% of revenue
- Non-GAAP diluted earnings per share of $2.44, ahead of the consensus estimate of $2.39
Source: Broadcom Inc. Q2 Fiscal Year 2026 Results and earnings call transcript
And guidance for Q3 fiscal 2026? Broadcom projected revenue of approximately $29.4 billion, an 84% jump from the same period a year earlier, according to the company statement.
My review of the data suggests this is one of the cleanest earnings beats in the semiconductor space in recent memory.
Related: Broadcom CEO drops unexpected message on AI and software
The AI revenue line alone, growing at 143%, signals that Broadcom’s custom chip business is becoming a dominant force in the infrastructure powering the AI boom.
Yet the stock still sold off. That should tell you the pressure here is external, not fundamental.
CrowdStrike’s record ARR and stock split couldn’t stop the slide
CrowdStrike’s story is nearly identical in structure.
The 15-year-old cybersecurity firm reported fiscal Q1 2027 results on June 3, beating expectations across every guided metric. Highlights included:
- Total revenue of $1.39 billion, up 26% YoY
- Annual recurring revenue (ARR) of $5.51 billion, up 24% YoY
- Net new ARR of $255.8 million, a record for Q1
- Free cash flow of $468.5 million, up from $279.4 million a year earlier
Source: CrowdStrike First Quarter Fiscal 2027 Results
In my previous report on CrowdStrike, I highlighted that they announced a four-for-one stock split the same evening.
That’s typically a signal of confidence from management. Why? You don’t split a stock you think is headed lower.
CRWD shares are still up about 43% year-to-date as of June 5, according to Yahoo Finance — easily outpacing the S&P 500‘s roughly 7.86% gain over the same stretch.
Also Read: CrowdStrike Holdings Inc. Latest News
According to TheStreet, Goldman also raised its CrowdStrike price target to $726 from $500 after the strong earnings. But in the short term, Cramer’s warning suggests the rotation pressure may not be finished.
Bloomberg via Getty Images
SpaceX and Anthropic IPOs are pulling capital from everywhere
Here’s the bigger picture, and why it matters to anyone holding AI-era tech stocks right now.
SpaceX filed an amended prospectus with the Securities and Exchange Commission, setting a fixed price of $135 per share, according to TheStreet. That implies a base valuation of roughly $1.75 trillion.
Anthropic, the maker of the Claude AI model, officially filed for an initial public offering (IPO) after raising $65 billion in a Series H round on May 28, according to TheStreet.
Also Read: SpaceX Latest News and Stories
The deal valued Anthropic at approximately $965 billion, briefly making it the most valuable AI startup in the world ahead of OpenAI, according to CNBC.
Anthropic’s revenue run rate reached approximately $47 billion in May, up from roughly $10 billion a year earlier, CNBC reported. That kind of growth trajectory is exactly what draws institutional money fast.
Related: Anthropic scales its most powerful AI a day after filing to IPO
When capital this large hits the market, something has to give. Investors rotating into SpaceX or Anthropic need liquidity. Stocks like AVGO and CRWD — both sitting on massive multi-year gains — become the obvious source.
I crunched the numbers: AVGO is up about 400% over three years. CRWD is up roughly 335% over the same window, according to Yahoo Finance. Those are enormous gains sitting on institutional balance sheets. Locking them in to fund the next big IPO is a rational, if painful, trade.
What this means for investors watching AVGO and CRWD stocks
Cramer’s warning isn’t a verdict on either company’s future. Both AVGO and CRWD have demonstrated they can grow revenue, expand margins, and generate serious cash.
But the near-term dynamic is real. When two of the largest private companies in history are preparing to go public at combined valuations approaching $2.75 trillion, the gravitational pull on liquid capital is enormous. Something has to fund those allocations.
The irony is sharp. Two of the strongest-performing AI stocks of the past three years are being sold.
It isn’t because they failed, but because they succeeded so spectacularly that they became the most convenient source of cash.
Related: Jim Cramer does the math on 5 mega-IPOs, and it doesn’t add up
