Jim Cramer adds to Broadcom stock on post-earnings pullback

Broadcom Inc (NASDAQ: AVGO) came in ahead of Street estimates in its third financial quarter. Its shares are still down more than 6.0% on Friday.

Cramer remains bullish on Broadcom stock

The stock is taking a hit primarily because the guidance was only in line with expectations.

But Jim Cramer wants investors to remember that Broadcom is known for under-promising and over-delivering. His Charitable Trust capitalised on the pullback and loaded up on another 17 shares of the chipmaker this morning.  

The famed investor attributed today’s weakness in Broadcom stock also to a more than 10% gain in the two weeks ahead of the earnings release. His Charitable Trust now owns 50 shares in total of the semiconductor behemoth.

You can read the complete earnings report of Broadcom here.

Piper Sandler sees material upside in Broadcom stock

Jim Cramer is convinced that Broadcom stock is well-positioned to benefit from the continued focus on artificial intelligence.

He also recommends investing in the multinational before it completes its $61 billion acquisition of VMware (find out more) – a deal that the Mad Money host believes will create an additional stream of recurring revenue for Broadcom and be materially accretive to its gross profit margins as well.

Who also shares his optimism on the Nasdaq-listed firm is Harsh Kumar – a Senior Research Analyst at Piper Sandler. His $975 price objective on Broadcom suggests its shares could climb another 12% from here.

Note that the California-based company also pays a dividend yield of 2.13%.