10 S&P 500 Stocks on Jim Cramer’s Radar

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 128

Cramer praised Broadcom Inc.’s (NASDAQ:AVGO) CEO and highlighted that he has delivered on his promises.

“Number seven was generally obvious in true Nasdaq style. I’m talking about Broadcom, symbol AVGO, up 108%. Now we had CEO Hock Tan on the show when we were in San Francisco not that long ago, and he laid out a vision where his company would be making a killing from the data center. It’s very rare that you have a totally bankable exec come on your show telling you exactly what will happen and then that executive delivers 100%. He’s greeted with disbelief, a giant upside surprise, and a gigantic move higher. He said it all. Plus, I think Broadcom’s in inning one of this turn. It’s not too late to get on board. This one, we have a nice slug for the Charitable Trust.”

Broadcom (NASDAQ:AVGO) is a prominent company in semiconductor design, development, and supply, known for creating custom chips for major cloud companies like Google. It also manufactures essential networking equipment to link thousands of AI chips in server clusters. One of its noteworthy products is its accelerator chips, called XPUs, which play an important role in the AI ecosystem.

CEO Hock Tan provided a significant revenue forecast for the company over the next two years, forecasting a shift in the AI-chip industry that could benefit companies developing custom silicon chips like XPUs, rather than relying on general-purpose GPUs made by competitors such as Nvidia. Tan sees considerable growth potential in Broadcom’s AI and AI networking sectors, with revenue projections for 2027 ranging between $60 billion and $90 billion, a significant increase from last year’s estimate of $15 billion to $20 billion.

Tan attributed Broadcom’s (NASDAQ:AVGO) growth to its custom XPUs and AI networking solutions, noting the rising adoption of these chips by key clients, especially Google. The company has doubled its XPU shipments to three hyperscale customers, and by 2027, these clients are expected to deploy 1 million XPU clusters, which Tan believes will drive significant growth for the company.