Updated
Updated · Yahoo Finance · Sep 17
Cramer Calls Broadcom 10% Cheaper Stock Too Cheap to Ignore After Pullback
Updated
Updated · Yahoo Finance · Sep 17

Cramer Calls Broadcom 10% Cheaper Stock Too Cheap to Ignore After Pullback

2 articles · Updated · Yahoo Finance · Sep 17

Summary

  • Broadcom shares, down more than 10% over the past month and about 150 points below their June high, were labeled “too cheap to ignore” by Jim Cramer after the recent tech selloff.
  • The pullback followed Broadcom’s Sept. 2 earnings, when strong results and a multi-year AI forecast were overshadowed by current-quarter guidance that investors viewed as merely in line; the stock is still roughly 7% lower since that report.
  • Fiscal third-quarter revenue rose 85.5% to $29.6 billion, while AI semiconductor revenue jumped 221% to $16.7 billion, underscoring Broadcom’s central role with hyperscale customers including Alphabet and Meta.
  • Management lifted full-year AI revenue guidance to $58 billion from $56 billion and projected $115 billion for fiscal 2027 and $230 billion for 2028, though investors remain wary of chip-sector cyclicality and shifting tech spending.

Insights

Is the market's obsession with near-term guidance blinding investors to Broadcom's emerging dominance in custom AI infrastructure?
Could Broadcom's aggressive VMware pricing strategy backfire and trigger a mass enterprise exodus despite its AI growth?
Will supply chain bottlenecks in advanced packaging throttle Broadcom's AI revenue before hyperscalers pivot to alternative designs?