Broadcom Inc. (AVGO) Isn’t That High When It Comes To A P/E Multiple, Says Jim Cramer

We recently published Jim Cramer Discusses These 12 Stocks & Says Trump’s Winning. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer recently discussed.

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor designer primarily known for its networking chips and modems. In today’s AI era, the firm’s shares have seen investor interest due to its custom chip design business. NVIDIA’s AI GPUs are the best-performing AI chips in the world, which has constrained their supply and led to high prices. As a result, custom chip designers such as Broadcom Inc. (NASDAQ:AVGO) have attracted companies such as OpenAI to design chips that could supplement NVIDIA’s AI chips in data centers. Broadcom Inc. (NASDAQ:AVGO) is also one of Cramer’s top stock picks for the second half. Here are his recent remarks about the company:

“Like when I looked today there’s a big Broadcom bond deal and I’m saying wow well they did a lot great things. And I see semis doing terrific things and I see them all still not that high when it comes to the price-to-earnings multiple.”

Broadcom Inc. (AVGO) Isn't That High When It Comes To A P/E Multiple, Says Jim Cramer

A technician working at a magnified microscope, developing a new integrated circuit.

Earlier, Cramer discussed Broadcom Inc. (NASDAQ:AVGO)’s strong share price performance this year:

“You know there’s a stock, it has 1.2 billion dollars of valuation. 1.2 trillion. And the trillion’s still a lot. The company’s called Braodcom and it just hit an all time high!. It’s all time high. Now we should remember that there are companies out there that are smoking hot. Right now. And they are the leaders.

“We’re back to just talking about what’s a great secular trend. It’s like nothing happened.”

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.