Broadcom's AI Financing Could Reach $370 Billion. But It's Not as Bad as It Sounds.
The number rattling the market is a modeled ceiling on future deals. The number the chipmaker has actually signed is much smaller — for now.
Overview
Broadcom (NASDAQ:AVGO) shares fell 5.9% on Friday, closing at about $393 -- nearly 21% below their 52-week high. The drop capped a difficult week for the tech sector. Among the week's unwelcome news was a downgrade aimed not at Broadcom's earnings but at its debt.
Early last week, Bank of America reportedly downgraded Broadcom's bonds to market weight -- the firm's equivalent of a neutral. The reported reason was a new platform Broadcom built with Apollo Global Management and Blackstone to finance customers' artificial intelligence (AI) data centers.
Details
The headline number from the note: the financing behind the platform could reach $370 billion by mid-2029, with Broadcom reportedly guaranteeing much of it.
Source
Originally published at www.fool.com.