Jim Cramer Comments On Broadcom's Post-Earnings Share Price Movement
Broadcom Inc. (NASDAQ:AVGO) reported strong AI-related revenue growth, with a surge of 221% annually to $16.7 billion in the second quarter. Despite this performance, its shares closed down by 2.7% on September 3rd following earnings release. Jim Cramer discussed these results live and highlighted Broadcom's aggressive guidance for future AI-related revenue reaching up to $230 billion by fiscal year 2028. The company raised its financial forecasts for the next few years, projecting revenues of $58 billion in FY2026, $115 billion in FY2027, and $230 billion in FY2028. However, Broadcom also warned about tighter gross margins, forecasting a drop to 73% from 78%. This mirrors NVIDIA's recent guidance for lower AI-related revenue growth. Hedge fund interest slightly declined compared to the previous quarter but remained significant with over 170 funds holding stakes in AVGO. The stock currently trades at a forward P/E ratio of 19, which is more attractive than NVIDIA’s higher valuation.
Topics: AI Broadcom earnings Jim Cramer semiconductors stock price movement