Broadcom Inc.'s credit risk indicators have risen alongside its plans to secure over $60 billion in financing for AI chip agreements, according to data tracked in August.
The company’s 5-year credit default swaps increased by 28 basis points over the month, outpacing the increases recorded by peers such as Oracle Financial Software and SpaceX. Its 5.15% coupon bonds maturing in 2031 also saw yields climb approximately 14 basis points during the same period.
Broadcom is currently in discussions to finalize debt arrangements exceeding $60 billion to support AI chip financing, with beneficiaries including Anthropic PBC. Earlier in 2026, the company agreed to guarantee the majority of a $35 billion debt package arranged by investors including Apollo Global Management and Blackstone. The funds were earmarked for purchasing custom AI chips, which were subsequently leased to Anthropic.
The surge in credit risk measures reflects broader trends in 2026, as chip manufacturers like Broadcom and Nvidia increasingly rely on financial guarantees and large-scale debt facilities to support cloud computing infrastructure expansion. The financing arrangements underscore the scale of capital required to meet surging demand for AI-related hardware and services.
