Broadcom Inc. (AVGO) Is Up Because People Feel It Can Rival NVIDIA, Says Jim Cramer

We recently published 14 Latest Stocks on Jim Cramer’s Radar. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer recently discussed.

Broadcom Inc. (NASDAQ:AVGO)’s shares jumped by 13% last week as investors piled into the firm, believing that it could cater to large-scale custom AI chip demand. The stock soared as the firm revealed a new $10 billion custom AI chip customer that many believe is OpenAI. Cramer discussed the current market sentiment surrounding NVIDIA’s AI GPUs and Broadcom Inc. (NASDAQ:AVGO)’s role in the market:

“I think the customers are saying, you know what, I really want NVIDIA but it’s really expensive. They want a price break. They want to be able to go Hock Tan and say listen, could you put together Celestica offering with Hock Tan . . . and that’s considered to be the competition that then can say NVIDIA, I want the price down. I don’t think that that offering is superior. But I do think that Broadcom’s stock is up in large part because people feel they can rival NVIDIA.

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Previously, Cramer was nothing but full of praise for Broadcom Inc. (NASDAQ:AVGO)’s CEO Hock Tan:

“Hock Tan, I’ve known him for a long time. He’s not given to any superlatives and no hyperbole. The numbers that he is talking about indicate that we are in a gold rush that you thought was. . .this is an incredible man who has put together an amazing company, and the tentacles are bigger than this. It’s not just also VMWare, it’s really hitting strong from networking. But there’s just an incredible demand, we’re right at the cusp of reasoning. And you need high performance computers to reason. And when I say reason it means that, that’s the beginning of not prompting. Right now it’s a prompt economy, you know like tell me how many times, how many hammers did Home Depot sell last week versus Lowe’s? No, that’s just going to be, how many hammers should I sell? And using the numbers that you have. And the numbers will be much better than anything we can calculate.”

While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.