Broadcom Inc.

(NASDAQ Global Select)
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Bullish +75

Jim Cramer praises Broadcom and recommends buying another iconic stock

Company update AI-generated analysis

πŸ“ˆ Jim Cramer explicitly advises investors not to sell Broadcom (AVGO), calling it an iconic company with a proven playbook of acquiring mission-critical tech and maximizing free cash flow.

πŸš€ AVGO's AI semiconductor revenue is projected to exceed $115 billion in fiscal 2027, driven by heavy demand for custom accelerators from clients like Google and Meta.

πŸ“Š The company achieved an all-time high stock price of $495 in June 2026, supported by a decade-long track record of 39.41% compound annual growth rate.

πŸ’° Broadcom has delivered a massive 603.64% return over the past five years according to Yahoo Finance data cited in the article.

🀝 AVGO co-designs critical AI chips for major tech giants, including Google's TPUs and Meta's accelerators, securing its strategic market position.

⚠️ The stock recently gave back year-to-date gains after pricing in years of strong growth, which Cramer views as a test of investor patience rather than a fundamental issue.

Bullish Signals
  • Jim Cramer explicitly recommends holding or buying Broadcom (AVGO), stating 'I wouldn't shoot Broadcom' and highlighting its status as an iconic company with a durable business model.
  • The company boasts an exceptional 39.41% compound annual growth rate over the past decade and a staggering 603.64% return over the last five years.
  • AI semiconductor revenue is projected to exceed $115 billion in fiscal 2027, scaling toward $230 billion in fiscal 2028 due to surging demand for custom accelerators.
  • AVGO recently reached an all-time high stock price of $495 in June 2026, demonstrating strong market confidence despite recent pullbacks.
  • The company maintains critical partnerships by co-designing Google's TPUs and Meta's accelerators, ensuring continued relevance in the AI boom.
Risk Factors
  • Broadcom has recently given back its year-to-date gains after reaching an all-time high, which Cramer suggests may be a test of investor patience regarding high expectations.
  • The stock's recent price correction implies that the market has priced in years of strong growth ahead, creating potential pressure if future results do not meet these elevated expectations.
Full Analysis
Jim Cramer recently praised Broadcom (AVGO) on his 'Mad Money' show, advising investors not to sell the stock despite recent price corrections. The host highlighted AVGO's exceptional long-term performance, noting a compound annual growth rate of 39.41% over the past decade and a five-year return exceeding 600%. Cramer characterized the company as an 'iconic' business that has delivered massive value through its specific playbook of acquiring mission-critical technology and maximizing free cash flow. Broadcom's financial strength is driven by surging demand for custom AI accelerators and high-speed networking silicon, with revenue from its AI semiconductor segment projected to exceed $115 billion in fiscal 2027. The company recently reached an all-time high of $495 in June 2026 before giving back some year-to-date gains, a move Cramer interprets as a test of investor patience rather than a fundamental deterioration. AVGO continues to co-design critical chips for major clients like Google and Meta, securing its position as a key beneficiary of the AI boom. While the article primarily focuses on Cramer's recommendation to buy Coca-Cola instead, it provides significant context regarding Broadcom's valuation and market sentiment. The text notes that AVGO has benefited from heavy demand for custom chips built for customers like Google and Meta, reinforcing its strategic importance in the current tech landscape. The piece concludes that holding or buying Broadcom remains a sound decision given its durable track record and strong projected revenue growth.