Broadcom faces investor scrutiny over off-balance-sheet AI financing commitments for chip customers. Analysts warn that obligations to support customer leases create substantial contingent liabilities. These commitments could reach $370 billion in senior debt by mid-2029.
Institutional investors are reassessing exposure as risk shifts back to the company's balance sheet. A critical security flaw in the recently acquired VMware unit further pressured the stock. Broadcom shares recently sold off despite high underlying demand for AI semiconductors.