Jim Cramer’s Bold Predictions About These 15 AI Stocks

5. Broadcom Inc (NASDAQ:AVGO)

Number of Hedge Fund Holders In Q3 2024: 128

Date of Cramer’s Comments: September 6th, 2024

Performance Since Then: 70%

Broadcom Inc (NASDAQ:AVGO) is a semiconductor designer that sells networking and other chips. Its ability to design chips has paid off well in the AI era due to the products’ ability to supplement pricey and short-in-supply GPUs made by NVIDIA. Since Cramer’s remarks, Broadcom Inc (NASDAQ:AVGO)’s stock has gained 70% in an impressive set of gains that have seen their ups and downs. The shares soared by 38% in December 2024 when management shared that it could target a $90 billion AI chip revenue opportunity in 2027. However, the shares sank by 15% during the DeepSeek selloff. Since then, they’ve added 15% on catalysts such as Meta increasing its chip deployments. Here’s what Cramer said about Broadcom Inc (NASDAQ:AVGO) in September:

“Broadcom gave us results that showed a tad bit of weakness in artificial intelligence orders, and the pin action took down the whole darn cohort. I don’t believe AI is a bubble, but these stocks are still up a great deal, especially in August. And September tends to bring out sellers when you get just in-line numbers. That’s what we got from Broadcom. It was in line, it wasn’t a shortfall.”

“Ben Reitzes, who I quote a lot because he’s really smart, said Broadcom was hurt by some choppiness in Google orders. That wasn’t clear from the conference call, but it makes a lot of sense. That business will bounce back.”

“The issue here isn’t Broadcom’s reaction, which took down most of the tech. No, it’s the overreaction to Broadcom that seemed to cascade into finance and then anything cyclical. The pain was palpable. To me, this is all about the zeitgeist, not the facts, because so many companies are doing well despite the slowing economy. However, you can’t waste time arguing with the sellers who suddenly want nothing whatsoever to do with this market. Nothing’s going to stop them from taking profits out of fear.”