Broadcom Inc. (NASDAQ: AVGO) stock gained almost 1% during Friday's premarket session as risk appetite firms up into the open. Nasdaq futures are up 0.34% while S&P 500 futures have gained 0.26%. The company is deepening its role in the AI infrastructure buildout through a potentially massive financing package, new customer agreements and partnerships designed to expand demand for its custom chips and data-center equipment.
Broadcom Explores Up to $100 Billion AI Financing
Broadcom is discussing a financing package with lenders that could include $60 billion to $70 billion of senior secured debt and roughly $30 billion of junior debt, according to people familiar with the matter. The structure could bring the total financing to as much as $100 billion, Bloomberg reported on Thursday.
Under the proposed arrangement, a special-purpose vehicle would issue the debt, while Broadcom would guarantee a portion of the senior tranche.
The financing would help companies including Anthropic secure Broadcom chips and other AI infrastructure. The talks remain ongoing, and the financing could roll out in stages rather than all at once.
Broadcom held $19.63 billion in cash and cash equivalents as of May 3, 2026. It held $62.66 billion in long-term debt.
Apollo and Blackstone Extend AI Infrastructure Partnership
Blackstone Inc. (NYSE: BX) and Apollo Global Management Inc. (NYSE: APO) are discussing participation in the financing after partnering with Broadcom in June to fund AI computing infrastructure.
Their earlier AI XPV transaction raised $35 billion to purchase custom Broadcom AI chips for leasing to Anthropic. Broadcom backstopped most of that debt, helping the senior tranches secure investment-grade ratings and lower borrowing costs.
The broader partnership plans to finance more than 20 gigawatts of computing capacity, requiring hundreds of billions of dollars in investment.
CEO Sees AI Chip Sales Topping $100 Billion
Broadcom's CEO said in March that the company expects AI chip sales to exceed $100 billion next year, underscoring management's expectations for continued AI-driven growth.
The company is using financing partnerships to help customers secure the computing infrastructure needed to deploy those chips, while also competing more directly with NVIDIA Corp. (NASDAQ: NVDA) for AI spending.
Apple and OpenAI Deals Broaden Broadcom's AI Reach
Broadcom has also expanded its customer relationships beyond Anthropic. Its agreement with Apple Inc. (NASDAQ: AAPL) is expected to exceed $30 billion and run through 2031.
Broadcom has also secured agreements to develop custom AI chips for companies including OpenAI, adding to the partnerships that have helped drive the company's valuation higher in recent years.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $513.68. Recent analyst moves include:
- Erste Group: Downgraded to Hold (July 7)
- UBS: Buy (Lowers Forecast to $485.00) (June 4)
- B of A Securities: Buy (Raises Forecast to $530.00) (June 4)
- iShares Semiconductor ETF (NASDAQ: SOXX): 8.12% Weight
- iShares Expanded Tech Sector ETF (NYSE: IGM): 7.71% Weight
- First Trust NASDAQ Technology Dividend Index Fund (NASDAQ: TDIV): 8.05% Weight
Price Action
AVGO Stock Price Activity: Broadcom shares were up 0.83% at $367.06 during premarket trading on Friday, according to Benzinga Pro data.