Jim Cramer Was Right About Broadcom (AVGO)

We recently published 10 Stocks Wall Street is Watching Heading into October. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Wall Street is watching.

Near the end of May, Jim Cramer said in a program on CNBC that the market was not paying attention to the potential of Broadcom. He said at the time that his trust had a “big position” in the company.

“I don’t think people focus on Broadcom enough. This is a $1.1 trillion company and no one cares. In Hock (Broadcom CEO), we trust. I care. The big position trust. And I think that people should recognize that this company has the brains of a lot of what’s in a data center. And people are just ignoring it and ignoring it and ignoring it and they shouldn’t. They’re coming out with a lot of new software. The margins are expanding and people just don’t understand that Hock Tan gets his man at all times.”

AVGO was trading around $240 as of Cramer’s comments, while the stock price is $327 as of September 30.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its second quarter 2025 investor letter:

“Shares of fellow semiconductor giant Broadcom Inc. (NASDAQ:AVGO) also outperformed during the quarter, as customer demand for the company’s custom accelerator chips remained insatiable despite the uncertain economic environment. The company is on pace for 10 consecutive quarters of AI-related semiconductor growth and expects continued strong demand persist, due to the sizable AI opportunity. In addition to its dominant market position, the company’s history of strong capital returns to shareholders results in a favorable outlook for a sizable investor base.”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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