Did Jim Cramer Get These 23 Stocks Right?

9. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 161

Talking about Astera Lab’s hot IPO, Jim Cramer also mentioned the company’s direct competitor, Broadcom Inc. (NASDAQ:AVGO) and how he found the company’s valuation attractive at the time:

“When you consider what Astera Labs actually does, offering chips and software for connectivity solutions which can be customized for customer specific needs, the best comparison is Broadcom. This one’s had a great run, up 112% over the past 12 months but it still sells for just just 23 times next year’s earnings estimate and it even pays you a modest dividend. […] Why pay through the nose for Astera when you can own Broadcom, something very similar, for much, much cheaper.”

Cramer’s outlook was spot on, as Broadcom Inc. (NASDAQ:AVGO) has surged by 39.59% since the time of that episode.

More recently however, on March 11^th, Jim Cramer sounded a bit worried about Broadcom (NASDAQ:AVGO), reflecting on the price reaction of the stock following its most recent earnings, saying:

“This is almost a trillion-dollar company, Broadcom, the semiconductor company, it’s on the verge of being right there, like you know, Mag 8 or whatever you want to call it. It reported an amazing quarter just last Thursday. Yet its stock had barely gotten any credit, it came back hard today, rallied as much as ten points and then giving back five. But that’s still a very good sign.”