Jim Cramer Was Right on Broadcom (AVGO)
Cramer’s Bold Call on Broadcom Pays Off: What’s Fueling This Explosive Rally?
For months, Jim Cramer has been highlighting that demand for AI chips would keep accelerating, and now the data proves him right. In recent weeks, Broadcom Inc. (NASDAQ: AVGO) — a leading player in the Semiconductors / Technology sector — has delivered results that dramatically validate Cramer’s bullish forecast.
The stock price of AVGO recently hit a new 52-week high, climbing toward $185.16 USD, up from previous lows near $79.51 USD (Yahoo Finance). While the stock has seen brief dips — for example, a –4% drop in a single session (Quiver Quantitative) — the broader trend remains strongly bullish, signaling robust investor confidence in Broadcom’s growth trajectory.
Cramer confidently stated that “the demand for cutting-edge AI chips keeps accelerating,” emphasizing that this wave would directly benefit companies like Broadcom (NASDAQ: AVGO) (24/7 Wall St.). Many at the time dismissed it as typical market talk, but the numbers now speak louder than words.
Broadcom’s fiscal Q3 2025 earnings tell the story. The company reported revenue up 22% year-over-year to a record $16.0 billion USD, and an adjusted EBITDA surge of 30% (Broadcom Investors). Even more impressive, free cash flow jumped 47% compared to last year, while Broadcom returned $2.8 billion USD to shareholders through dividends and buybacks (Broadcom Investors). These figures prove Broadcom’s success isn’t just about growth — it’s about profitable growth.
A major catalyst behind this rally is the company’s breakthrough Tomahawk Ultra chip, engineered for ultra-high-speed data traffic in AI applications and high-performance data centers. With 51.2 terabits per second bandwidth, ultra-low latency (~250 nanoseconds), and support for up to 1,024 accelerator connections, the chip is a technological powerhouse (Nasdaq). Crucially, it’s also pin-compatible with earlier generations, making it easier for clients to adopt without massive infrastructure changes.
Still, the path forward isn’t without challenges. Recently, Broadcom scrapped plans to build a microchip plant in Spain after failed negotiations with local authorities (Reuters) — a reminder that even tech titans face strategic and geopolitical headwinds.
Internally, there’s been notable movement as well. Charlie B. Kawwas, Broadcom’s president, sold 505 shares valued at roughly $174,979 USD, representing about 1.8% of his stake (Quiver Quantitative). On the flip side, institutional investors like Badgley Phelps Wealth Managers LLC have been increasing their positions, adding tens of thousands of AVGO shares to their portfolios (Quiver Quantitative) — a sign of continued confidence from the smart money.
For skeptics who once thought Cramer was just making noise, the evidence is undeniable: Broadcom’s rise isn’t hype — it’s execution, innovation, and timing. Listed on the Nasdaq, Broadcom stands as one of the most dominant forces in the Semiconductors / Technology sector, perfectly positioned to capitalize on the explosive growth of the AI era.
Whether you’re a long-term investor or a market watcher, one thing is clear: Cramer was right on Broadcom, and the company’s trajectory suggests this AI-driven story is just getting started.