Jim Cramer Says Market Isn't 'Oversold Enough' For A Powerful Bounce Back Led By Broadcom's Strong Earnings

As the Nasdaq 100 index entered the correction zone on Thursday, Broadcom Inc. (NASDAQ:AVGO) surged 12.82% in after-hours, however, CNBC’s Jim Cramer believes that Broadcom’s strong earnings won’t be able to help the index out of the slump.

What Happened: Broadcom slipped 6.33% on Thursday when Nasdaq 100 plunged nearly 10% from its previous high, entering a correction phase. However, AVGO recovered during after-hours as it reported better-than-expected earnings and guidance.

While Gary Black, the managing partner at Future Fund LLC, believed that Broadcom’s first quarter artificial intelligence spending of $14.9 billion, above the estimated amount of $14.6 billion, could help the AI stocks on Friday, Cramer changed his stance on Friday morning.

Cramer took to X and said that the Nasdaq correction wasn’t “oversold” enough to expect a “powerful” bounce back led by Broadcom’s strong earnings.

We just aren't oversold enough ...