AVGO Stock Hits Record Highs Amid Reports Of $35B Financing From Top Private Equity Players

• Apollo Global Management Inc. and Blackstone Inc. are involved in talks.
• AVGO had hit a financing snag relating to its plan to develop chips with OpenAI. 
• Broadcom shares hit record highs on Friday and are on track to record gains for five out of six previous weeks.

Broadcom (AVGO) stock gained 4% on Friday and hit record highs after a media report suggested the chipmaker is involved in talks with top private equity players to raise funds to support the development of AI chips. 

Apollo Global Management Inc. and Blackstone Inc. are among private credit lenders involved in talks with chipmaker Broadcom over a roughly $35 billion financing deal, Bloomberg reported, citing people familiar with the matter. 

The financing, which would be one of the largest private credit deals ever, will help Broadcom fund the development of chips for AI tasks. Negotiations with the investment firms are ongoing, and terms could change, according to the people. 

If finalized, the $35 billion financing will provide the liquidity necessary for Broadcom to scale its custom silicon business as Big Tech firms—including Amazon and Microsoft—plan to spend a combined $725 billion on AI infrastructure. 

AVGO’s Recent Partnerships 

AVGO has recently secured high-profile, long-term agreements to develop custom Tensor Processing Units (TPUs) for Google and networking components for Meta Platforms (META) through 2031. Broadcom also recently expanded its partnership with Anthropic, promising to supply 3.5 gigawatts of next-generation AI compute capacity starting in 2027.

The chipmaker’s ambitious plan to develop bespoke artificial intelligence hardware along with OpenAI also reportedly hit a significant financing roadblock, as per a report from The Information on Thursday. 

The companies were negotiating an agreement for Broadcom to finance the first phase of chip production, which would consume 1.3 GW of data center capacity and cost around $18 billion. 

The negotiations have hit a snag, as Broadcom has said it would finance the first phase only if Microsoft (MSFT) agrees to buy roughly 40% of the chips. Microsoft has yet to sign a firm purchase agreement to use the chips developed by AVGO and OpenAI.   

AVGO’s AI Financial Performance 

The chipmaker’s AI-related revenue has surged—growing 106% year-over-year to $8.4 billion in the first quarter of fiscal 2026 and forecasting AI chip sales to exceed $100 billion next year. 

However, investors are also monitoring broader industry pressure, with the semiconductor sector being highly sensitive to global trade tensions and supply chain constraints.

AVGO Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘normal’ message volumes. 

The stock has jumped 108% over the past 12 months. 

Read More: MSFT Stock Drops After British Hedge Fund Slashes $8B Stake, Almost Ends Decade-Long Holding

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