Broadcom CEO Hock Tan goes one-on-one with Jim Cramer
Speakers
Jim Cramer
— Host, Mad Money
Hock Tan
— CEO, Broadcom
Summary
Jim Cramer interviews Broadcom President and CEO Hock Tan on Mad Money after a sharp selloff in AI-related stocks. Tan says AI compute demand is not slowing and reiterates Broadcom's large 2028 revenue and earnings targets, while describing financing partnerships with Apollo and Blackstone for cash-flow-poor AI labs. Cramer argues Broadcom looks too cheap after the pullback and remains at the heart of the AI ecosystem.
- Broadcom shares have fallen more than 10% in a month and are roughly 150 points below June highs.
- Hock Tan says demand for AI compute infrastructure, frontier models, and inference remains very strong and durable.
- Tan reiterates AI revenue from custom accelerators and networking could reach $230 billion in 2028, with non-AI businesses adding significant earnings.
- Broadcom's custom co-designed XPUs are presented as competitive with general-purpose GPUs for inference workloads.
- Apollo and Blackstone are described as willing private-credit partners for AI infrastructure financing because rates exceed Treasuries.
- Tan dismisses the need to slow AI development, calling generative AI a powerful tool that requires governance.
- Jim Cramer calls Broadcom too cheap to ignore and discloses his charitable trust owns the stock.
Ideas
Broadcom too cheap after AI selloff.
Cramer says Broadcom is a bargain after the stock fell more than 10% in a month and is about 150 points below its June high, despite strong results and a spectacular multiyear forecast. He argues Broadcom remains on track for incredible growth because it is at the heart of the AI ecosystem, and he notes his charitable trust has owned it for years and the stock may now be too cheap to ignore.
Broadcom AI demand durable, 2028 targets intact.
Hock Tan says there is no pause in AI demand: compute infrastructure for frontier models and inference remains very strong and durable. He stands by Broadcom's multiyear outlook, saying AI revenue from custom accelerators and networking for six customers should reach $230 billion in 2028, while the remaining software and semiconductor businesses can exceed $30 per share in earnings. He argues custom silicon co-designed with model developers performs better than general-purpose GPUs for those workloads, and that financing partners such as Apollo and Blackstone can fund customer infrastructure and reduce payment risk. He agrees with buying Broadcom stock and says the company will earn into its valuation.
Apollo, Blackstone AI lending opportunity.
Hock Tan says Broadcom is assembling a financing platform with strong financial partners for its cash-flow-poor but valuation-rich AI customers. Apollo and Blackstone are willing to extend credit to fund AI infrastructure because the rates available are better than Treasuries, and he says it is not difficult to find such partners even as AI infrastructure demand from OpenAI and Anthropic is huge over the next few years.
