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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.

Posonskyi Andrey/Shutterstock.com

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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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