Broadcom (AVGO) Stock: Cramer Picks Broadcom Over Salesforce as ARK Takes New Position

TLDR

• Broadcom shares gained 49% over the past year, with Jim Cramer calling it a better buy than Salesforce
• Goldman Sachs added Broadcom to its US Conviction List with a $450 price target on January 5th
• Cathie Wood’s ARK Invest bought 31,573 Broadcom shares worth $10.5 million on January 8th
• ARK purchased Broadcom during a 3.2% dip on Thursday, with shares rebounding 3.7% on Friday
• Cramer praised Broadcom CEO Hock Tan as one of the best executives in technology

Broadcom saw fresh buying from institutional investors this week. ARK Invest purchased shares during a Thursday dip. The stock rebounded quickly on Friday.

Broadcom Inc., AVGO

Jim Cramer made his preference clear during a recent CNBC appearance. He’d rather own Broadcom than Salesforce. The Mad Money host pointed to CEO Hock Tan as a key reason for his bullish stance.

Cramer believes Tan ranks among the best executives in technology. The CEO has led Broadcom through impressive growth over the past year. Shares climbed 49% during that period.

Wall Street Maintains Bullish Outlook

Goldman Sachs started 2026 with a vote of confidence for Broadcom. The bank added the chipmaker to its US Conviction List on January 5th. It maintained a Buy rating and $450 price target.

Goldman cited Broadcom’s strong position in the enterprise silicon market. The bank sees the company benefiting from custom chip design capabilities. AI-related demand has driven much of the recent interest.

UBS also raised its price target in December. The firm bumped its target to $475 from $472. It kept its Buy rating intact.

ARK Invest Buys the Dip

Cathie Wood’s ARK Next Generation Internet ETF took a new stake in Broadcom. The fund purchased 31,573 shares on January 8th. The position was valued at roughly $10.5 million.

ARK timed its entry well. Broadcom shares dropped 3.2% on Thursday. Other AI stocks also fell during the same session.

The stock recovered quickly on Friday. Shares rose 3.7% to $344.84 by midday trading. It marked a swift turnaround from the previous day’s decline.

The ARK Next Generation Internet ETF is the only ARK fund holding Broadcom stock. Wood’s firm manages multiple sector-focused ETFs. The purchase represents a new bet on semiconductor exposure.

ARK simultaneously reduced its Palantir Technologies position. The fund sold 58,741 shares worth $10.4 million. Concerns about Palantir’s valuation may have prompted the sale.

The fund’s Broadcom purchase comes as hardware stocks outperform software names. Cramer highlighted this trend in his recent comments. Custom chip makers like Broadcom sit at the center of AI infrastructure buildout.

Analysts see continued growth ahead for Broadcom. The company designs specialized chips for major tech customers. Its VMware acquisition expanded its software capabilities.

The stock trades at $332.48 as of Thursday’s close. It rebounded to $344.84 by Friday midday. ARK’s purchase occurred during the Thursday dip, positioning the fund for Friday’s gains.

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