Cramer says Broadcom is the real play in Meta’s chip partnership

Jim Cramer made a pointed call this week: in the context of Meta Platforms (NASDAQ:META | META Price Prediction) partnering with Broadcom (NASDAQ:AVGO) to produce tens of millions of custom AI chips, Cramer said “But Broadcom is the one that I think you need to focus on.” I agree, and here’s why:

Why Broadcom, and Why Now

After a 4.2% rally, Broadcom’s market cap surpassed Meta’s. Broadcom currently sits at a market cap near $1.88 trillion, trading at $396.72, up 13% over the past week and 123% over the past year.

The logic is straightforward: Meta is spending aggressively to build AI infrastructure, with 2026 capex guidance of $115 to $135 billion. That spending flows directly through suppliers like Broadcom. Meta carries the execution risk and balance sheet weight. Broadcom collects the revenue.

Broadcom’s most recent quarter showed AI chip revenue of $8.4 billion, up 106% year over year, above the…