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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.”

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.

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?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

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

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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