Cramer Backs NVIDIA, Broadcom as AI Competition Weighs on Stocks

Edgen Stock·Dec 20 2025, 07:12

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Key Takeaways

On his December 15 show, "Mad Money" host Jim Cramer reaffirmed his long-term belief in NVIDIA and Broadcom, even as increasing competition and heavy spending in the artificial intelligence sector have recently pressured their stock prices.

Cramer remains confident that NVIDIA and Broadcom "will get plenty of business" from the buildout of AI data centers.
Intense competition and aggressive spending from rivals like Oracle are cited as the primary reasons for the recent downturn in AI-related stocks.
Despite holding both stocks in his Charitable Trust, Cramer expressed less enthusiasm than before due to the crowded and competitive landscape.

Cramer: NVIDIA and Broadcom to Win Data Center Business

On his December 15 broadcast, Jim Cramer asserted that AI hardware leaders NVIDIA and Broadcom will continue to secure significant contracts despite recent stock market weakness. He argued that the market is incorrectly punishing the stocks based on a flawed belief that the necessary data center infrastructure is not feasible to build.

Cramer used an analogy of a truce between rival families to explain the market dynamics, concluding that even with more players, the primary suppliers will thrive.

Both will get plenty of business. The truth is, it was never feasible to build all these data centers that are needed. That’s why everyone hates the stocks. It’s exactly why these two stocks keep going down. Not until Oracle blinks, and it will.

— Jim Cramer, Host of Mad Money

AI Spending Spree Tempers Investor Enthusiasm

While Cramer maintains his holdings in both NVIDIA and Broadcom through his Charitable Trust, he noted a marked decrease in his bullishness, pointing to the high-cost battle for AI dominance. The heavy capital expenditures and fierce competition from companies like Oracle are creating headwinds for the sector.

I’m just a lot less enthusiastic than I used to be because there’s competition all over the place, and they’re spending like crazy, and the stocks have still had big moves.

— Jim Cramer, Host of Mad Money

This industry-wide spending has created uncertainty for investors, weighing on sentiment even for established market leaders and tempering expectations after a period of significant gains.