Jim Cramer Says Nvidia Would Face Criticism Over Broadcom-Anthropic Deal

What happened

Jim Cramer said Nvidia would face relentless media criticism if it struck Broadcom's $63 billion deal to supply Anthropic with chips, though he called the agreement excellent for all involved. Under the arrangement, lenders fund Broadcom chips and data-center equipment that Anthropic rents.

Confirmed

Global impact / market context

The structure puts repayment and hardware-value risk on Broadcom shareholders because Broadcom provides residual-value support, which means backing the equipment's leftover worth. Anthropic's rating one notch below investment grade raises the chance lenders demand stricter terms, potentially raising borrowing costs for chip-funded deals.

Analyst inference

Critics point to circular financing, where the same companies fund customers who buy their products, including Nvidia's guarantee of up to $105 billion in OpenAI data-center leases. That pattern can tie chipmakers' revenue growth to their own balance sheets, so investors may question how durable demand is.

Analyst inference

What to watch

1. Broadcom's pledge to lend Anthropic up to $42 billion, plus residual-value support, means Broadcom shareholders bear repayment and hardware-value risk if Anthropic cannot pay or the chips lose value. Confirmed
2. Watch whether Nvidia pursues a Broadcom-style deal, since Cramer said it would draw relentless criticism; the structure's lender funding and guarantees would decide how much risk reaches Nvidia shareholders. Proposed
3. Track Anthropic's credit rating, one notch below investment grade, because a downgrade could raise the cost of borrowed money for lenders funding the chips and data-center equipment Anthropic rents. Analyst inference

Evidence

• binance.com