Cramer exited AVGO over plans to raise $80 billion in debt but dismissed identical vendor financing concerns at NVDA as "lazy Susan deals."
Nvidia's 503x interest coverage and $49 billion in free cash flow let it fund an $80 billion buyback without touching bond markets.
Don't wait: the ****** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
The split screen from Aug. 25 is the setup investors need to understand heading into tonight's earnings report. In the morning, a CNBC clip logged Jim Cramer selling Broadcom and defending NVIDIA. That evening on Mad Money, he called NVIDIA (NASDAQ:NVDA) "the loom, the steam engine and the computer all balled up into one" and waved off the same vendor financing practice he had flagged at the other chipmaker as harmless.
The chipmaker he exited was Broadcom (NASDAQ:AVGO), a charitable trust holding. Cramer had noted the night prior that Broadcom was looking to raise a significant amount of debt to support a planned chip financing deal, and traders were already weighing AI leverage risks tied to a debt raise of up to $80 billion. Yet when the same circular financing critique was aimed at NVIDIA, Cramer brushed it aside: "The critics say these are circular deals where Nvidia gives someone money and then they spend that money on NVIDIA product. I call them lazy Susan deals."
#NVIDIA #financing #avgo
Nvidia's 503x interest coverage and $49 billion in free cash flow let it fund an $80 billion buyback without touching bond markets.
Don't wait: the ****** yst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
The split screen from Aug. 25 is the setup investors need to understand heading into tonight's earnings report. In the morning, a CNBC clip logged Jim Cramer selling Broadcom and defending NVIDIA. That evening on Mad Money, he called NVIDIA (NASDAQ:NVDA) "the loom, the steam engine and the computer all balled up into one" and waved off the same vendor financing practice he had flagged at the other chipmaker as harmless.
The chipmaker he exited was Broadcom (NASDAQ:AVGO), a charitable trust holding. Cramer had noted the night prior that Broadcom was looking to raise a significant amount of debt to support a planned chip financing deal, and traders were already weighing AI leverage risks tied to a debt raise of up to $80 billion. Yet when the same circular financing critique was aimed at NVIDIA, Cramer brushed it aside: "The critics say these are circular deals where Nvidia gives someone money and then they spend that money on NVIDIA product. I call them lazy Susan deals."
#NVIDIA #financing #avgo
14 hours ago
