By Michael Williams
Publication Date: 2026-03-06 11:10:00
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Broadcom (AVGO) is down 18% from December highs despite 106% AI revenue growth, a PEG ratio of 0.87, $8.01B free cash flow, a $10B buyback authorization, and analyst price target of $453.06.
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Jim Cramer argues the market has not caught up to Broadcom’s fundamentals, pointing to record earnings and elevated growth rates as evidence of undervaluation relative to the stock’s pullback.
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The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
Jim Cramer made his position clear on AVGO the morning after Broadcom’s Q1 fiscal 2026 earnings hit the tape: “This is an undervalued stock versus where people thought it was going to be.” The stock had just posted record quarterly revenue, AI sales more than doubled year-over-year, and management authorized a fresh $10 billion buyback. Yet the shares were still sitting roughly 18% below their December peak. Cramer’s read was that the market hadn’t caught up to the fundamentals. The question worth…
