Broadcom (AVGO) is reportedly in talks with private credit lenders, including Apollo Global Management (APO) and Blackstone (BX), for a financing deal of about $35 billion. According to Bloomberg, the money would help Broadcom fund the development of chips used for AI workloads. If completed, it would be the largest private credit deal ever and another sign that companies are using every available source of capital to support the AI infrastructure boom. As a result, Broadcom shares are up at the time of writing.
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It is worth noting that Broadcom recently signed a long-term agreement to develop and supply custom TPUs for Google (GOOGL) through 2031, along with networking and other components for Google’s AI racks. Broadcom also announced a separate deal with Google and Anthropic that could give Anthropic access to another 3.5 gigawatts of TPU-based AI compute capacity starting in 2027, depending on Anthropic’s commercial success. At the time, Broadcom said the companies were already speaking with financial partners to support the deployment.
Notably, these talks show how private credit is becoming a bigger source of money for the AI boom, even for strong investment-grade companies like Broadcom. In fact, private credit used to be more associated with lower-rated borrowers, but firms like Apollo and Blackstone are now chasing deals with major blue-chip companies. That shift makes sense given the size of the opportunity. While Nvidia (NVDA) still leads in AI accelerators, Broadcom is becoming an important custom-chip alternative, and CEO Hock Tan has said its AI chip sales could top $100 billion next year.
Is AVGO Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AVGO stock based on 26 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AVGO price target of $467.89 per share implies 9.2% upside potential.
