Broadcom shares slide as investors flag AI financing-model risks
Broadcom (AVGO) shares fell nearly 7% intraday on Friday after investors flagged risks in the financing model for its AI infrastructure expansion, including potential future customer guarantee exposure.
AVGO Broadcom shares fell nearly 7% intraday on Friday as investors flagged risks in the financing model for its AI infrastructure expansion.
BofA analysts estimate the financing vehicle for Broadcom's AI—chip customers could accumulate up to $370bn of senior debt by mid—2029, with about $150bn of new issuance in 2027, assuming a 20 GW data—centre buildout.
The debt would sit on the platform rather than Broadcom's balance sheet, but Broadcom has provided lease—payment guarantees for some customers; the first guaranteed transaction is about $29bn.
The financing structure began in June, when Apollo Global Management and Blackstone led a $35bn funding package for Broadcom's AIXPV platform; initial proceeds will support Anthropic's build of more than 1 GW of compute and the platform targets over 20 GW by 2028.
Market attention will focus on Broadcom's potential future guarantee exposure as AI infrastructure scales.