Jim Cramer’s Top 10 Stock Picks You Can’t Ignore

4. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Investors: 130

Jim Cramer highlighted Broadcom Inc. (NASDAQ:AVGO), a semiconductor and AI infrastructure company, noting that it has experienced significant fluctuations recently. Despite Cramer finding Broadcom Inc. (NASDAQ:AVGO)’s September 5th results impressive, he pointed out that its AI revenues fell short of expectations, which led to the stock dropping over 10% the following day.

“Boy, do we have a treat tonight! Broadcom, the $76 billion semiconductor and AI infrastructure company, has been a wild trader these last few weeks. When Broadcom reported on September 5th, even though I thought the results were terrific, their AI revenues came in a bit light versus expectations, and the stock ridiculously plunged more than 10% the next day.”

Broadcom Inc. (NASDAQ:AVGO) offers a strong investment opportunity due to its significant growth prospects, particularly in the artificial intelligence (AI) sector and its broad range of business activities. Broadcom Inc. (NASDAQ:AVGO) expects AI-related revenue to reach $12 billion for fiscal 2024, thanks to its leadership in Ethernet networking and custom accelerators for AI data centers. Its recent acquisition of VMware has enhanced its position in AI and infrastructure software.

In Q3 2024,Broadcom Inc. (NASDAQ:AVGO) reported impressive results, with a 47.3% year-over-year increase in revenue to $13.1 billion, surpassing expectations. Broadcom Inc. (NASDAQ:AVGO)’s infrastructure software segment saw revenue nearly triple to $5.8 billion. Although Broadcom Inc (NASDAQ:AVGO)’s Q4 revenue forecast is a slightly cautious $14 billion, its earnings per share (EPS) grew by 18.1%, reflecting strong growth.

Analysts are optimistic about Broadcom Inc. (NASDAQ:AVGO)’s long-term prospects, with price targets suggesting a potential upside of up to 70%. This optimism is driven by Broadcom Inc. (NASDAQ:AVGO)’s leadership in AI semiconductor solutions and diverse revenue sources. Despite some economic risks and competition, Broadcom Inc. (NASDAQ:AVGO)’s strong earnings and cash flow make it a compelling long-term investment.