Key insights
- The article highlights Jim Cramer's bullish stance on Broadcom (AVGO) due to its AI chip business and strong leadership. Broadcom's recent earnings beat and a large AI chip order are cited as catalysts. While positive for AVGO, the broader market impact is limited as it's primarily an analyst opinion piece. The article suggests potential upside for AVGO and the semiconductor sector.
Broadcom Inc. (NASDAQ:AVGO) is one of the Jim Cramer’s Hottest AI Stock Picks. AI chip designer Broadcom Inc. (NASDAQ:AVGO) has shaped up to be one of the most important stocks in today’s AI era. Its shares are up by 67% over the past year and by 39% since Cramer discussed the firm in Mad Money aired on January 2nd. Several catalysts have driven the share price since then. For instance, Broadcom Inc. (NASDAQ:AVGO)’s shares closed 9.4% higher on September 5th after the firm reported its fiscal third quarter earnings report. Not only did the results see the firm’s $15.9 billion in revenue and $1.69 in adjusted earnings beat analyst estimates of $15.83 billion and $1.65, but it also disclosed that it had secured a $10 billion order from an undisclosed customer for AI chips. Throughout 2025 and in 2026, Cramer has been one of Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan’s biggest supporters. The CNBC TV host believes that Tan is one of the toughest executives in the industry and is capable of steering his firm in today’s competitive environment. As early as January last year, Cramer was advising viewers to get into Broadcom Inc. (NASDAQ:AVGO)’s stock:
A semiconductor. Photo by Tima Miroshnichenko on Pexels
“It’s very rare that you have a totally bankable exec [Tan] come on your show telling you exactly what will happen and then that executive delivers 100%. He’s greeted with disbelief, a giant upside surprise, and a gigantic move higher. He said it all. Plus, I think Broadcom’s in inning one of this turn. It’s not too late to get on board. This one, we have a nice slug for the Charitable Trust.”
While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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