Jim Cramer Discusses Whether Broadcom Inc. (AVGO)'s $10 Billion Mystery Customer Is OpenAI

We recently published 10 Stocks Jim Cramer Discussed As He Dismissed A Recession. Broadcom Inc. (NASDAQ:AVGO) is one of the stocks Jim Cramer recently discussed.

Broadcom Inc. (NASDAQ:AVGO) stunned the stock market and the AI sector when it revealed that it had landed a $10 billion deal for custom AI chips. The announcement, paired with a strong earnings report, sent the stock 13.7% higher. Cramer discussed the potential of OpenAI moving away from NVIDIA to Broadcom:

“[On stock higher on reports that the $10 billion mystery customer is OpenAI] Yeah look I, I don’t want to be contrarian about too many things. . .but I would say the reason I even knew about OpenAI was that Jensen Huang, CEO NVIDIA, told me that really that they were the first company to really understand what Jensen had. And their partnership dates back the longest of any one of these hyperscalers. So I know I read this stuff and it says okay well this is a threat, an existential threat to NVIDIA and NVIDIA stock is down and then I read Ben Reitzes, who’s been the most right about this, particularly with Hock, with the CEO of Broadcom, he says no time to debate about, there’s so much business, there is a huge amount of business.

“Hock Tan, I’ve known him for a long time. He’s not given to any superlatives and no hyperbole. The numbers that he is talking about indicate that we are in a gold rush that you thought was. . .this is an incredible man who has put together an amazing company, and the tentacles are bigger than this. It’s not just also VMWare, it’s really hitting strong from networking. But there’s just an incredible demand, we’re right at the cusp of reasoning. And you need high performance computers to reason. And when I say reason it means that, that’s the beginning of not prompting. Right now it’s a prompt economy, you know like tell me how many times, how many hammers did Home Depot sell last week versus Lowe’s? No, that’s just going to be, how many hammers should I sell? And using the numbers that you have. And the numbers will be much better than anything we can calculate.”

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Disclosure: None. This article is originally published at Insider Monkey.