Broadcom Inc. (NASDAQ: AVGO) has drawn renewed attention from CNBC host Jim Cramer, who expressed strong conviction that the semiconductor giant is poised for a significant recovery.
Cramer pointed directly to a recently announced contract with Apple as the primary catalyst he believes will drive Broadcom’s business higher in the near term.
“But I know that the other stocks are all going to come back. Particularly Broadcom, because it has a contract with Apple that is larger than we thought,” Cramer said during a morning appearance.
He elaborated further, stating: “I will say, that one company whose business will go up, is Broadcom. Because of that deal they announced with Apple this weekend… they’re going to do ASIC for, Apple.”
Cramer also referenced commentary from Morgan Stanley’s Michael Wilson, noting that Wilson had recommended investors return to hyperscalers, a move Cramer said helped push Amazon’s stock higher.
Beyond the Apple deal, Cramer took to social media to frame Broadcom’s stock movement as a broader signal for the overall market’s direction, writing: “If there is going to be a turn the stock of Broadcom will let you know.”
He followed that post by highlighting two names as key market indicators, adding: “Broadcom and Lam great tells today!”
Broadcom shares have climbed 42% over the past year and are up 11% year-to-date, reflecting sustained investor appetite for AI-linked semiconductor exposure.
UBS reiterated a Buy rating on Broadcom on June 12th, setting a price target of $485 per share, citing the company’s deals with Apollo, Blackstone, OpenAI, and Anthropic as sources of financial visibility and capacity certainty.
Emerald Wealth Partners Growth Equity Strategy, in its Q1 2026 investor letter, described Broadcom as having “delivered another strong quarter,” with FY2027 AI revenue guidance coming in well above analyst expectations.
The firm noted that management at Broadcom’s latest analyst call “proactively and effectively countered investor concerns” around margin risks, competition from hyperscalers building their own chips, and software disintermediation.
Analysts responded to the stronger-than-expected guidance by upgrading their sales and profit estimates for Broadcom, with Emerald Wealth Partners describing some of those revisions as significant.
The Apple ASIC contract represents a meaningful expansion of Broadcom’s existing relationship with one of the world’s most valuable technology companies, adding a high-profile revenue stream to its already growing AI infrastructure business.
Cramer’s enthusiasm for Broadcom places it among a select group of AI hardware names he believes are positioned to outperform even amid broader uncertainty in the technology sector.
