Cramer says these 2 stocks are big winners from OpenAI’s new model release
OpenAI’s new Astra model is generating a ton of buzz and shining a bullish light on two of the Club’s chipmakers, according to Jim Cramer . We’re talking about Nvidia and Broadcom . Nvidia’s chips made GPT-6 Astra possible, while the model’s success instills confidence in OpenAI’s ability to make good on its custom silicon partnership with Broadcom. “One of the things that I think is roiling the market, heavily, today is this new release of OpenAI,” Jim said on Tuesday’s Morning Meeting. Nvidia’s Blackwell family of chips was used to train OpenAI’s model, which began a phased rollout last week and is being touted for advances in cybersecurity and computer skills. The performance underscores the capability of Nvidia’s chips, with Nvidia CEO Jensen Huang hinting that OpenAI will be using even more computing power from the company going forward. In a post on X, Huang said Astra used 100,000 Blackwell graphics processing units in training. “400K GPUs coming online next,” he wrote. “The stock that I think you should be buying is Nvidia,” Jim said during Tuesday’s Meeting, lamenting how shares opened the session higher, before rolling over and falling 2%. “It didn’t do anything wrong at all. If anything, it’s doing the right thing — it’s the reason why OpenAI is doing so well.” Astra is making investors feel better about OpenAI’s technical prowess in its heated battle against Anthropic and a gaggle of open-source competitors. OpenAI’s massive commitments for computing power and data centers have made investors quite sensitive to the AI lab’s perceived standing in the artificial intelligence race — the belief is that OpenAI needs to stay at the frontier in order to pay all its future bills. “The launch of Astra shows OpenAI is so back,” wrote Ben Reitzes of Melius Research, in a note to clients Tuesday. “Astra is worth dwelling on not only because it was trained on Nvidia Blackwells, but because it should start to dawn on people that OpenAI’s repositioning around coding and enterprise has clearly improved its chances for a successful IPO in 2027.” In this way, Broadcom benefits from Astra’s halo because OpenAI is one of its most critical custom-silicon customers. Shares of Broadcom are up 2.5% on Tuesday. Broadcom and OpenAI worked together on the development of OpenAI’s new Jalapeno chip, which is designed for the day-to-day use of models known as inference. Broadcom also counts Anthropic as an increasingly important customer. Investors want to see both OpenAI and Anthropic get their financial houses in order, with initial public offerings (IPOs) lurking later this year or in early 2027. If they accomplish that, Broadcom “is their preferred partner, and we’re going to see a stock that goes up much more,” Jim said. That possibility helps explain why we’re sticking with Broadcom despite cutting our position roughly in half in late August. The most encouraging part of Broadcom’s earnings report last week was CEO Hock Tan’s multiyear AI revenue targets. Hitting them will require OpenAI and Anthropic to hold up their end of the bargain, especially as Alphabet ‘s Google shifts some of its custom chip budget to other design partners, diversifying away from Broadcom. Anthropic is on track to be Broadcom’s largest custom customer in the company’s fiscal 2027 and sustain that into fiscal 2028, Tan said, while OpenAI is projected to rise to No. 2 in fiscal 2028. We maintain a full complement of chip stocks in our portfolio to ride the AI wave — Nvidia and Broadcom are joined by Intel , which offers exposure to manufacturing as the industry seeks a credible, domestic alternative to Taiwan Semiconductor , and most recently Micron , which gives us exposure to the memory-chip crunch. Nvidia remains, in our minds, the undisputed AI chip king, with shares trading at an undemanding valuation relative to its growth outlook. One of the major concerns around Nvidia — feeding directly into that depressed valuation — is that its most lucrative customers are leaning into custom chip alternatives. While that’s definitely something to monitor, owning the leader in custom chip design solutions in Broadcom helps us balance out that risk. The AI chip market should also not be viewed as a zero-sum game, where there can only be one eventual winner. There’s enough demand to support multiple winners, and different chips bring different strengths to the table. OpenAI and Astra offer support of this multi-polar world. (Jim Cramer’s Charitable Trust is long NVDA and AVGO. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . 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