Jim Cramer on Broadcom: "It's a Fantastic Story of Private-Label Chips"

Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer talked about. Cramer highlighted that the stock is his Charitable Trust’s biggest position. He commented:

“Okay, let me tell you something, Broadcom is the biggest position for my Charitable Trust. Oh, we love it for the club. It’s a fantastic story of private-label chips.”

Broadcom Inc. (NASDAQ:AVGO) develops semiconductor devices and infrastructure software, as it provides products for networking, broadband, wireless connectivity, storage, and industrial applications. The company’s technologies support uses across data centers, telecommunications, smartphones, factory automation, and AI-driven connectivity. On September 2, Cramer mentioned the company and said:

“When you hear that the big tech stocks have ridiculous valuations, how many times have you read that, you need to be thinking, how did they get that way to begin with? The answer is because they’re the best, and they can weather anything: tariffs, global craziness, antitrust, Chinese genius, you name it. My strategy has been… to wait another day and start buying them. There’s always a catalyst that turns things around with these growth stocks. Maybe it’s Broadcom… And by the way, Broadcom is a $1.4 trillion company, and it rallied from down 10 points in the AM to close up 85 cents.”

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