Broadcom Inc. (NASDAQ:AVGO) and Anthropic finalized $63 billion in hardware financing, prompting commentator Jim Cramer to state the transaction is excellent for all parties while noting reporters would scrutinize Nvidia Corp. (NASDAQ:NVDA) over a comparable agreement.

The Deal and Cramer’s Reaction

Bank of America Corp. (NYSE: BAC), Blackstone Inc. (NYSE: BX), Citigroup Inc. (NYSE: C) and Morgan Stanley (NYSE: MS) committed $63 billion to finance Broadcom artificial intelligence chips for Anthropic. A newly formed special purpose vehicle will utilize the financing to purchase Broadcom’s XPU accelerators and lease them to Anthropic, with deliveries commencing in 2027.

Bank of America, Citigroup, and Morgan Stanley are arranging the first-lien portion, while Blackstone is the sole provider of the second-lien financing. Broadcom is providing residual value support for the first-lien amount.

Reacting to the arrangement, Cramer posted on X, “I think this Broadcom deal is excellent for all involved but the press would never stop hectoring Nvidia if it did this deal.”

I think this broadcom deal is excellent for all involved but the press would never stop hectoring Nvidia if it did this deal

— Jim Cramer (@jimcramer) October 27, 2026

Hock Tan’s Leadership Highlighted

The Wall Street Journal reported that lenders considered abandoning the transaction, termed “Project North Star,” due to risk concerns and rising interest rates. Broadcom CEO Hock Tan held weekend discussions with bank executives, agreeing to higher interest rates and offering guarantees against losses if Anthropic defaults.

Cramer attributed the agreement’s viability directly to the CEO, stating, “Cramer said the Broadcom deal works because of Hock Tan. “It is why it is a high quality deal. There will not be others like it because there is only one Hock.”

This Broadcom deal works BECUASE of Hock Tan. it is why it is a high quality deal. There will not be others like it because there is only one Hock

— Jim Cramer (@jimcramer) October 27, 2026

How Has AVGO Performed?

The stock was lower by 7.05% over the last year, down 4.89% year-to-date, and lower by 6.70% over the last month. The stock is up 3.85% at $341.85 on Tuesday.

Benzinga’s Edge Stock Rankings indicate that NVDA maintains a weak price trend in the short term but a strong trend in the long and medium terms, with a good growth score.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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