Broadcom's AI customer financing platform raises concerns, with stock price dropping nearly 7% during the session

Broadcom fell nearly 7% during Friday's trading, as the market expressed concerns about the financing model behind its AI infrastructure expansion. Bank of America analysts estimate that the financing platform built by Broadcom for AI chip customers could accumulate up to $370 billion in preferred debt by mid-2029. Broadcom has provided guarantees for lease payments for some customers, with the first transaction guarantee amounting to approximately $29 billion.