Broadcom secured multi-billion dollar custom AI chip deals with major hyperscalers. These clients include Alphabet, OpenAI, and Anthropic. This success cements its position in core AI infrastructure.
The agreements contributed to a reported backlog exceeding $73 billion. Manufacturing partner TSMC faces capacity constraints due to this demand.
Investors are considering potential headwinds despite the positive AI chip business developments. Key considerations include the company's stock valuation, margin pressures, and broader geopolitical risks.
The stock recently experienced volatility. This follows recent insider selling and market concerns regarding high-multiple AI stocks.