Broadcom shares fell nearly 6% on August 14. A Bank of America report questioned the financing structure for AI chip sales.
A customer financing vehicle could reach $370 billion in debt by mid-2029. This entity helps customers purchase Broadcom’s custom AI accelerators.
Broadcom backstops a portion of lease payments for the off-balance-sheet debt. The company’s initial maximum exposure is capped at $29 billion.
Investors fear potential risks despite Broadcom’s strong AI revenue growth.