Jim Cramer is bullish on Broadcom stock ahead of its Q2 earnings

Famed investor Jim Cramer remains bullish on Broadcom Inc (NASDAQ: AVGO) even though the stock is already up about 45% for the year.

Broadcom will report its Q2 results this week

Broadcom is scheduled to report its financial results for the second quarter on June 1^st.

Consensus is for it to earn $9.35 a share this quarter versus $8.39 per share a year ago. On CNBC’s “Squawk on the Street”, Cramer said:

This is going to be up big. Broadcom has previously said they anticipate to ship $3.0 billion [worth of] total cloud custom chips to Google, Microsoft, Meta. So, they’ve got the mojo.

Just days ago, Evercore ISI analyst C.J. Muse also reiterated his “overweight” rating on the Broadcom stock and raised his price target to $850 that suggests another 6.0% upside from here.

Broadcom stock will benefit from Apple deal

Last week, Apple Inc also announced a multi-year, multi-billion-dollar deal with Broadcom to make 5G radio frequency components, including FBAR filters, in the United States (find out more).

Jim Cramer sounded bullish on the multinational’s pending acquisition of VMware as well. He likes Broadcom stock because it could continue to benefit from the growing focus on artificial intelligence.

I look at this and I say, alright, it’s not an expensive stock. People are looking for a new way to be there. I find that I can’t fight it.

Remember that AVGO is a dividend stock that currently pays a yield of 2.29% that makes up for another reason to invest in it.