Jim Cramer Believes "Broadcom Represents One of the Cheaper Ways to Play Artificial Intelligence"

Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer answered questions about. Noting that the market expanded out of the tech stocks, a caller asked if they should hold or sell their position in the stock. Cramer replied:

I’m going to make a suggestion, not hold, not sell, but buy. I think that Broadcom is down to the level, it’s about a hundred points from its high. Hock Tan has made quarter after quarter after quarter. I think he’ll do it again. It’s got growth. Software and hardware both are on fire. It does a lot of work with Google. It’s expanding that work. I think that Broadcom represents one of the cheaper ways to play artificial intelligence.

Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor devices and infrastructure software, including networking, connectivity, and storage solutions. The company’s products are used for applications in data centers, telecommunications, broadband, smartphones, industrial systems, and AI networking. During the December 15, 2025, episode, Cramer noted that he trusts the CEO of the company, as he commented:

Last week turned brutal for the AI data center stocks when we got this pair of poorly received quarters from Oracle on Wednesday and then Broadcom on Thursday night. Oracle plunged 10.8% the next day. Broadcom dropped 11.4% on Friday. Dragged the whole group down with them. Now, as I mentioned in my Sunday think piece for the CNBC investing club, I’m not that worried about Broadcom, which we own for the Charitable Trust. Broadcom reported a healthy top and bottom-line beat. They gave strong sales and EBITDA guidance for the current quarter.

The stock only got hit because the CFO inartfully mentioned on the conference call that their AI business will include more full rack systems next year, meaning more systems with components not entirely made by Broadcom, and thus, the gross margins on those systems will be lower.

Oh, really scary. Oh, was the market stupid about this. It’s not a big deal, people. But remember, the stock had run up a great, really dramatically going into the quarter, so it got slammed. At the end of the day, I trust Broadcom CEO Hock Tan, he has never ever let me down, to keep delivering excellent numbers.

He will do it again. Historically speaking, every time the market’s doubted this guy, the market has been dead wrong. I told club members in that same think piece that I would hold onto Broadcom, but after today’s 20-point decline, it might be time to switch directions. Do some buying. So I feel good about Broadcom. You’re getting a real nice buying opportunity now… Broadcom, like I said to club members, stay close to your email. We could be pulling the trigger to buy more any minute.

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.

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.