Jim Cramer Talks About Broadcom

A recent discussion highlighted thirteen stocks, including Broadcom Inc. (NASDAQ: AVGO). This company specializes in producing chips that find applications in data centers and communication networks.

As of February, Jefferies maintained a “buy” rating for Broadcom, keeping its price target at $500. The firm pointed out that Broadcom could gain significantly from its involvement in the AI sector, noting its superior performance over MediaTek in certain chip categories. Cramer has lauded Broadcom and its CEO, Hock Tan, describing him as among the best in the industry. Likewise, UBS set a price target of $475, reaffirming its “buy” recommendation. Broadcom is poised to benefit from a rising demand for tensor processing units (TPUs), which are emerging as an alternative to AI GPUs. Cramer indicated that the stock has the potential to rise further.

“Then NVIDIA might argue against cutting down on everyone because there’s plenty of business. But the truth is, everyone is affected. We often feel like we can’t overlook NVIDIA; it’s excellent for training due to the overwhelming amount of training. However, I expected Broadcom to be more enthusiastic. It’s genuinely impressive. Just look at Jensen; he pioneered this field and is far ahead of competitors. The new Vera Rubin looks promising, and the software built around it is impressive as well. Jensen is unmatched in this space.”

While Broadcom shows promise as an investment, it seems some AI stocks might offer higher returns with less risk. If you’re interested in affordable AI stocks that stand to benefit from recent tariffs and onshoring trends, a detailed report is available.

Read next: 30 stocks that should double in 3 years and 11 hidden AI stocks to buy right now.

Disclosure: None.