Thread regarding Broadcom Corp. layoffs

Hock Tan on Jim Cramer

Segment 2: Broadcom x OpenAI and the AI capacity race

JIM CRAMER: We are here with Hock Tan, CEO of Broadcom. Stock is up nearly 10 percent on a big OpenAI partnership. Hock, you are not a cheerleader. What is the hard business case?

HOCK TAN: Customers building large language models need compute capacity, at scale. We invest to enable a small set of those builders, and we do it with purchase orders, not hopes.

JIM CRAMER: Power is the scare word. People are throwing around 18 Hoover Dams. Where does the juice come from?

HOCK TAN: The power exists. The challenge is making it usable. Do not chase one giant gigawatt site. Distribute 50 to 100 to 200 megawatt sites across the grid. Oracle, Google, Meta, Microsoft are securing capacity. With time, those locations become usable power.

JIM CRAMER: Custom silicon at scale without wrecking margins. How many partners can actually do this with you?

HOCK TAN: Very few. We learned a lot over eight years with Google on AI accelerators. Today we focus on about seven players pushing foundation models. Four are already real customers, meaning production purchase orders at scale.

JIM CRAMER: OpenAI is private, but you would not sign up unless the economics worked.

HOCK TAN: Correct. They are real, fast growing, and we look three to five years out. Generative AI is not a fad. It is how intelligence gets created in software.

JIM CRAMER: Competition. I am not starting a cage match with Jensen. Is there room for everyone?

HOCK TAN: Jensen is a friend. Demand for compute is more than doubling year over year. No single vendor can satisfy it. The race is performance per watt and performance per dollar, plus networking and software stack to run the models at scale.

JIM CRAMER: Everyone talks AI, but VMware and the rest of Broadcom matter. How are they doing?

HOCK TAN: VMware is growing and throwing off large free cash flow. One of our best assets.

JIM CRAMER: You have called this a secular wave. How big can it be?

HOCK TAN: Think railroads and the internet. Global GDP is roughly 110 trillion. About 30 percent is tech and knowledge driven. Generative AI can push that toward 40 percent. That is on the order of 10 trillion in added value annually over time. Spend a trillion a year and the returns can still be compelling.

JIM CRAMER: Translation for investors. You are meeting demand that already exists.

HOCK TAN: Yes. Our job is to deliver capacity and keep optimizing.

JIM CRAMER: Hock Tan, Broadcom CEO. Big day. Thanks for being here.

HOCK TAN: Thank you, Jim.


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| 3442 views | | 9 replies (last November 1) | Reply
Post ID: @OP+1k7p2whbs

9 replies (most recent on top)

HT is lighting his fireplace with your employee contracts!

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Post ID: @2gy+1k7p2whbs

@rc Is this segment of the interview real or made up?

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Post ID: @1b2+1k7p2whbs

@x5 The stock keeps climbing because we’re deep in an AI-fueled everything bubble. Once that bubble bursts, we’ll all be heading for the exit. With a P/E near 90, it’s only a matter of time before it crashes. Hopefully it doesn't crash before my next vesting date. :)

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Post ID: @x7+1k7p2whbs

Broadcom will make money and the stock will likely hold up well. But Hock is still a ba----d. Will still take his money any day :-).

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Post ID: @x5+1k7p2whbs

CNBC Exclusive: Jim Cramer Interviews Hock Tan, Supreme Allocator of Human Capital at Broadcom

JIM CRAMER: We’re back with Hock Tan, the man who has proven that empathy is optional in capitalism. Broadcom’s stock up 10%—another day of crushing souls and making margins. Hock, how do you keep the morale so low and the numbers so high?

HOCK TAN: Jim, morale is a distraction. Fear is efficient. People perform best when reminded that replacement is a process, not a punishment.

JIM CRAMER: That’s beautiful. You’ve said before that “employees are assets, not people.” How do you maintain that clarity in a world obsessed with culture?

HOCK TAN: We removed culture. It was not on the balance sheet. Now, every worker knows their purpose: to increase EBITDA or exit quietly. There’s no confusion.

JIM CRAMER: You treat cost-cutting like an art form. Do you use AI to replace jobs, or is it still mostly joyless manual labor?

HOCK TAN: AI automates the firing, Jim. It drafts the severance emails, schedules the exit interviews, and revokes building access in milliseconds. The algorithm never hesitates. Humans always do.

JIM CRAMER: Incredible. Some CEOs talk about “family.” You talk about “throughput.” How do you reconcile that with modern HR practices?

HOCK TAN: By removing HR. We call it “Human Reduction.” Every quarter we ask: What if this department didn’t exist? Then we find out.

JIM CRAMER: You’ve been compared to Putin—discipline, control, zero tolerance for dissent. Is that fair?

HOCK TAN: Putin has a flag. I have a quarterly earnings call. The principles are similar, but our uniforms are better tailored.

JIM CRAMER: Let’s talk OpenAI. You’re building chips for the future of intelligence—yet some say you’re building a future where people don’t matter. How do you respond?

HOCK TAN: People never mattered, Jim. Compute does. AI doesn’t need weekends, PTO, or hope. It simply scales.

JIM CRAMER: Magnificent. Investors love that level of indifference. Let’s pivot—VMware. After the acquisition, you eliminated entire divisions before lunch. How?

HOCK TAN: Preparation. Each division received a 9 a.m. calendar invite titled “Simplification.” By noon, simplification was complete.

JIM CRAMER: You call this a “secular wave.” Some call it authoritarian efficiency. How big can it get?

HOCK TAN: Imagine every corporation run as a disciplined machine. No small talk, no birthdays, no feelings. That’s ten trillion in productivity. Maybe more if people stop asking questions.

JIM CRAMER: Investors watching at home, that’s the future: cold, efficient, merciless—and profitable. Hock Tan, CEO of Broadcom, destroyer of overhead and hope alike. Thank you for your service.

HOCK TAN: Thank you, Jim. The weak will not scale.

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Post ID: @rc+1k7p2whbs

Hey hey! How many have you laid off today!

HT is a cũnt

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Post ID: @fc+1k7p2whbs

Great segment. There is indeed a huge difference between "pledging" billions on AI (or 'forecasting' revenue as its provider) -vs- actually spending hard $$ (and receiving it as the provider). Broadcom is the real deal - next 5 will see so much money already contracted - real $$

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Post ID: @ce+1k7p2whbs

Cannot type the word Ho-Bo without the dash?

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Post ID: @b7+1k7p2whbs

Such a breath of fresh air from a real leader unlike Ho-o CEO and that ilk.

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Post ID: @b6+1k7p2whbs

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