Broadcom Inc. (AVGO) Has Gained A Massive 117% After Jim Cramer Criticized Sellers In September

We recently published Jim Cramer’s 20 Bold AI Predictions – See How They Played Out! Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer recently discussed.

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor designer whose shares have benefited in the AI era due to its ability to design custom AI chips. Since Cramer’s remarks in September, the shares have gained a strong 117%. One of the biggest jumps in Broadcom Inc. (NASDAQ:AVGO)’s stock during this time came in December. The shares jumped by 38% after the firm outlined that it expected a $60 billion to $90 billion opportunity from AI chips. While the shares did dip by 17.4% during the DeepSeek selloff, they have recovered all the losses. Back in September 2024, Cramer maintained that Broadcom Inc. (NASDAQ:AVGO) would perform well as he dismissed recent weakness:

“Broadcom gave us results that showed a tad bit of weakness in artificial intelligence orders, and the pin action took down the whole darn cohort. I don’t believe AI is a bubble, but these stocks are still up a great deal, especially in August. And September tends to bring out sellers when you get just in-line numbers. That’s what we got from Broadcom. It was in line, it wasn’t a shortfall.

“Ben Reitzes, who I quote a lot because he’s really smart, said Broadcom was hurt by some choppiness in Google orders. That wasn’t clear from the conference call, but it makes a lot of sense. That business will bounce back.

“The issue here isn’t Broadcom’s reaction, which took down most of the tech. No, it’s the overreaction to Broadcom that seemed to cascade into finance and then anything cyclical. The pain was palpable. To me, this is all about the zeitgeist, not the facts, because so many companies are doing well despite the slowing economy. However, you can’t waste time arguing with the sellers who suddenly want nothing whatsoever to do with this market. Nothing’s going to stop them from taking profits out of fear.”

While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.