Jim Cramer: Broadcom's Selloff Is a Buying Opportunity, Not a Warning Sign

Jim Cramer Says $AVGO Selloff Is Overdone, Calls Stock "Too Cheap to Ignore"
Jim Cramer defended Broadcom during the September 14 episode of Mad Money, framing the broader AI stock selloff that day as driven by sentiment rather than fundamentals. "It's a tough time to come out to San Francisco, a day when the whole AI complex is getting hammered because Anthropic and OpenAI seem to be, I don't know, pulling in their horns," he said, adding "I think there's some real bargains in this group."
Broadcom shares had fallen more than 10% over the past month despite what Cramer called a "spectacular multi-year forecast," with the pullback triggered by current-quarter guidance that struck some investors as merely in line. "I think Broadcom's still on track to put up some incredible growth because they're at the heart of the AI ecosystem," Cramer said, calling the stock, then roughly 150 points below its June high, "too cheap to ignore."
Broadcom's fiscal third-quarter revenue reached $29.6 billion, up 86% year over year, while AI semiconductor revenue surged 221% to $16.7 billion, about 56% of total revenue. Remaining performance obligations climbed to $179.2 billion. Fourth-quarter guidance calls for AI semiconductor revenue of $21.7 billion, up 236% year over year, pushing full fiscal 2026 AI revenue guidance to $58 billion from a prior $56 billion. CEO Hock Tan guided fiscal 2027 AI semiconductor revenue to approximately $115 billion, roughly doubling to $230 billion in fiscal 2028.
Morgan Stanley raised its price target to $505 following the results, with the average analyst target across 29 firms near $518, implying roughly 45% upside from current levels. Truist cut its price target but maintained its buy rating. Tan said on the same Mad Money episode that nothing in the Anthropic-driven caution changes Broadcom's own forecasts, according to CNBC.