Jim Cramer Reveals Why Broadcom (AVGO) Is Powerful

We recently published Jim Cramer Discussed A Mysterious Yellow Light & These 9 Stocks. Broadcom Inc. (NASDAQ:AVGO) is one the stocks discussed by Jim Cramer.

Broadcom Inc. (NASDAQ:AVGO) is one of the largest semiconductor design companies in the world. Its shares are up by 85% over the past year and by 22% year-to-date. Citi discussed the firm on May 12th as it raised the share price target to $500 from $475 and kept a Buy rating on the stock. The bank remarked that Broadcom Inc. (NASDAQ:AVGO)’s April quarter could post a strong set of results due to tailwinds from AI demand. The AI demand covers chips, with Citi adding that the switch to chips from rack shipments carries the potential of boosting the firm’s gross margins. Cramer often discusses Broadcom Inc. (NASDAQ:AVGO) in his morning appearance and several of his remarks have focused on the prowess of the firm’s CEO, Hock Tan. In this appearance, like Citi, he also discussed the firm’s exposure to AI chips: