Jim Cramer Recommends This ‘Very Low Multiple’ AI Stock

Published on October 27, 2025 at 9:06 am by Fahad Saleem in News

We recently published 10 Buzzing News to Watch as Investors Look for Best AI Stocks Amid Fed Rate Cuts. Cisco Systems Inc (NASDAQ:CSCO) is one of the best AI stocks amid Fed rate cuts.

Jim Cramer in a program earlier in October said that Cisco’s valuation is attractive and the company can benefit amid rising demand due to AI.

“Cisco right now just unveiled a chip and networking system for, of course, the data center to connect AI data centers. This is something that Broadcom has been doing quite effectively. So you might say this is a good example of what’s going on. Here’s Cisco, and we remember they were the most overvalued company in 2000. So someone’s going to say that was a different Cisco. But here, Cisco makes a much lower 16-times-earnings stock, not 400-times earnings. The other one was actually about 40 times earnings. I look at this deal and I say, okay, Cisco and Broadcom—is there enough business for both? The reason why you don’t have to worry is there’s so much business out there. Broadcom is everywhere. I think that you can own them both. My charitable trust does own them both. That’s not because we think that both of them are going to clash and therefore there’s only one winner. We’re doing it because there’s so much business to be had that I think both are buys, and Cisco’s very low multiples. I was going to say it’s much cheaper on a multiple basis than Broadcom.”