Jim Cramer Reveals Why Broadcom (AVGO) Is Powerful

Ramish Cheema

Mon, May 18, 2026 at 10:49 AM EDT 2 min read

We recently published Jim Cramer Discussed A Mysterious Yellow Light & These 9 Stocks. Broadcom Inc. (NASDAQ:AVGO) is one the stocks discussed by Jim Cramer.

Broadcom Inc. (NASDAQ:AVGO) is one of the largest semiconductor design companies in the world. Its shares are up by 85% over the past year and by 22% year-to-date. Citi discussed the firm on May 12th as it raised the share price target to $500 from $475 and kept a Buy rating on the stock. The bank remarked that Broadcom Inc. (NASDAQ:AVGO)’s April quarter could post a strong set of results due to tailwinds from AI demand. The AI demand covers chips, with Citi adding that the switch to chips from rack shipments carries the potential of boosting the firm’s gross margins. Cramer often discusses Broadcom Inc. (NASDAQ:AVGO) in his morning appearance and several of his remarks have focused on the prowess of the firm’s CEO, Hock Tan. In this appearance, like Citi, he also discussed the firm’s exposure to AI chips:

“Now Broadcom is interesting, because, the company that Chuck doesn’t want to be hostage to is Broadcom. Broadcom is really powerful and they’ve got all the silicon people want. And I think that stock again is cheap. Now when I say cheap, cheap versus what everybody wants in Cerebrus!”

While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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