AI Financing Concerns Mount, Broadcom Plunges 7% Intraday as $370B Potential Risk Sounds Alarm

Bank of America estimates that Broadcom's chip financing projects could generate approximately $370 billion in senior debt by mid-2029, funding 20GW of computing capacity, with roughly $150 billion in new debt potentially added in 2027 alone. BofA did not dismiss Broadcom's operational fundamentals, but the market is beginning to realize that if future AI computing demand relies on increasingly massive financing platforms to sustain itself, the valuation logic of the AI industry chain must also account for asset residual value, customer default rates, debt costs, and supplier guarantee obligations.