Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On

1. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Investors: 130

Cramer noted that Broadcom Inc. (NASDAQ:AVGO) has traded above its previous levels following a quarter that was initially poorly received. He compared Broadcom Inc. (NASDAQ:AVGO) ‘s turnaround to an “angry swan,” emphasizing that the stock’s performance has improved, despite market volatility. Cramer remarked on the emotional nature of the market, highlighting how quickly sentiment can change.

“Did you know that today Broadcom Inc (NASDAQ:AVGO) traded above where it was sitting before the aforementioned quarter, which I told you was good anyway? The one that seemed to be hated but now seems to be transforming from an ugly duck into a beautiful, but angry, swan. Have you ever noticed swans are really angry? Look, we’re in a highly emotional market.”

Broadcom Inc. (NASDAQ:AVGO) remains a strong investment due to its solid financial performance and strategic position in high-growth sectors like artificial intelligence. In its September 2024 earnings report, Broadcom Inc. (NASDAQ:AVGO) beat expectations with $1.24 earnings per share, slightly above analysts’ estimates of $1.20. Revenues also surged to $13.07 billion, reflecting a 47% year-over-year increase. This growth highlights Broadcom Inc. (NASDAQ:AVGO)’s success in its semiconductor business, supported by increasing demand for AI-related chips​.

With AI and cloud infrastructure driving demand for its products, Broadcom Inc. (NASDAQ:AVGO) is poised for further expansion. Analysts expect earnings to grow by 33.7% next year, and nearly all analysts covering the stock maintain a “buy” rating, projecting a potential 25% stock price increase​. These factors make Broadcom Inc. (NASDAQ:AVGO) an appealing long-term investment in sectors like semiconductors and AI.

While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones on our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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