Broadcom Inc. (AVGO) Is Going To Come Back, Says Jim Cramer
📈 Jim Cramer predicts a stock rebound for Broadcom (AVGO) following a recent AI chip selloff.
💼 A major new contract with Apple to design ASICs is cited as a key catalyst for future growth.
📊 Shares are up 42% over the past year and 11% year-to-date as of July 2026.
🏦 UBS reiterated a Buy rating with a $485 price target, citing deals with Apollo, Blackstone, OpenAI, and Anthropic.
📈 Emerald Wealth Partners highlighted FY2027 AI revenue guidance that was well above expectations.
🛡️ Management successfully countered investor concerns regarding margin risks and competition from hyperscalers.
🔍 Analysts have upgraded sales and profit estimates following the company's strong performance.
Bullish Signals
- Jim Cramer explicitly states that Broadcom will be a leader in the market turn due to its large new contract with Apple for ASIC design.
- UBS maintained a Buy rating and set a $485 price target, validating the company's financial stability through deals with major entities like OpenAI and Anthropic.
- Emerald Wealth Partners noted that FY2027 guidance for AI revenues was significantly better than Street expectations, leading to analyst upgrades.
- The stock has demonstrated strong momentum with a 42% gain over the past year and an 11% gain year-to-date.
- Management proactively addressed and mitigated key investor concerns regarding margins and competition from hyperscalers building their own chips.
Full Analysis
Jim Cramer has renewed his bullish stance on Broadcom Inc. (NASDAQ:AVGO), asserting that the stock will rebound following a recent selloff in AI chips. Cramer highlights a significant new contract with Apple, which involves designing ASICs for the tech giant, as a primary driver for future business growth. He suggests this deal is larger than previously anticipated and could signal a broader market turn.
Financial data indicates that AVGO shares have risen 42% over the past year and 11% year-to-date. UBS reiterated its Buy rating with a $485 price target, citing increased certainty from deals with major partners like Apollo, Blackstone, OpenAI, and Anthropic. Additionally, Emerald Wealth Partners noted that while recent revenue and EPS slightly beat consensus, FY2027 guidance for AI revenues significantly exceeded expectations.
Analysts have upgraded sales and profit estimates following the company's proactive management of investor concerns regarding margins and competition from hyperscalers building their own chips. The article concludes with promotional content for other investment reports and subscription services, but the core financial narrative focuses on Broadcom's strong positioning in the AI sector.
