Jim Cramer Reveals 12 Stocks Investors Should Monitor Closely

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Investors: 130

Jim Cramer reported that William Blair has initiated coverage of Broadcom Inc. (NASDAQ:AVGO) with a “buy” rating. The chipmaker is projecting $12 billion in AI sales for its fiscal year 2024. Analysts believe that sales of non-AI semiconductor chips are bottoming and that there will be accelerating growth in Ethernet AI network fabrics, which further supports their positive outlook for Broadcom Inc. (NASDAQ:AVGO).

“William Blair started coverage of Broadcom with a buy. The chipmaker is forecasting $12 billion in AI sales in its fiscal year 2024 and the analysts see a bottoming in non-AI semi chips and accelerating growth of Ethernet AI network fabrics.”

Broadcom Inc. (NASDAQ:AVGO)’s positive outlook is supported by strong Q2 2024 earnings, with revenue of $8.9 billion, a 12% increase from last year, and a net income of $3.5 billion. This growth comes from high demand in its semiconductor and infrastructure software segments, particularly in data centers and networking.

As cloud computing continues to grow, Broadcom Inc. (NASDAQ:AVGO) is well-positioned to benefit, as its advanced semiconductor solutions are crucial for improving data center efficiency and performance. With a diverse range of products in networking, broadband, and enterprise software, Broadcom Inc. (NASDAQ:AVGO) can tap into multiple growth opportunities, especially following successful acquisitions like CA Technologies and Symantec.

Broadcom Inc. (NASDAQ:AVGO) is also dedicated to research and development, investing heavily in next-generation technologies such as 5G and artificial intelligence, which are expected to expand further. Broadcom Inc. (NASDAQ:AVGO) strong cash flow allows for significant returns to shareholders through dividends and stock buybacks, boosting investor confidence.

Recent product launches aimed at enhancing connectivity and performance in 5G networks, along with partnerships in emerging technologies, strengthen Broadcom Inc. (NASDAQ:AVGO)’s competitive edge. Overall, these factors showcase Broadcom Inc. (NASDAQ:AVGO)’s solid financial performance, growth potential in key sectors, and commitment to innovation, making it an attractive investment choice.