Jim Cramer’s Bold Predictions About These 9 Semiconductor Stocks

3. Broadcom Inc (NASDAQ:AVGO)

Number of Hedge Fund Holders In Q3 2024: 128

Date of Cramer’s Comments: 09-06-24

Performance Since Then: 76.5%

Broadcom Inc (NASDAQ:AVGO) is a diversified semiconductor company with a presence in the semiconductor and software markets. Its semiconductor business provides modems, embedded processors, ASICs, and other chips. A tight market for NVIDIA’s GPUs and the firm’s chip design strengths have led to investor hopes of Broadcom Inc (NASDAQ:AVGO) capturing the AI market through its custom products. These expectations came to the forefront in December when Broadcom Inc (NASDAQ:AVGO)’s shares surged by a whopping 38% over the next two days after the firm’s fiscal fourth-quarter results saw it project a $60 billion to $90 billion AI revenue opportunity in 2027. Here’s what Cramer said 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.”