AVGO dropped 6% as BofA flags $370B in potential AI vehicle debt; AMD surged 4% on Baird's Street-high $1,250 price target. NVIDIA runs a structurally similar $500B financing plan with Blackstone and Apollo, but escaped Friday's selloff because no specific debt figure was attached. AMD's put-to-call ratio sits at 1.15 and its money flow ranks last among 10 chip names, signaling that options traders are hedging gains, not chasing the rally.
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Year-to-date through Thursday's close, Broadcom stock was up 21% and Advanced Micro Devices stock was up 126%. Bank of America analyst Tom Curcuruto flagged that Broadcom's chip-financing vehicle could reach $370 billion of senior debt by mid-2029 at 20-gigawatt scale, including roughly $150 billion of new issuance in 2027 alone. Per Broadcom's latest 10-Q, an investor partner assumed the purchase and lease agreements, and Broadcom agreed to backstop lease payments for five years, with maximum exposure of up to $29 billion on the initial transaction.
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The $370 billion isn't Broadcom's debt; the vehicle raises capital and leases custom AI accelerators to customers. Broadcom's fiscal Q2 2026 revenue was $22.19 billion, up 47.9% year over year, with AI chip revenue up 143%, and management has guided to $16 billion of AI semiconductor revenue for the current quarter. Polymarket traders give Broadcom a 94% chance of topping $15 billion in AI revenue this quarter and a 78% chance of exceeding $16 billion, and today's selloff targets the financing structure rather than underlying demand.
Baird analyst Tristan Gerra doubled his AMD price target to a Street-high $1,250 from $625 while maintaining Outperform. His model implies AMD AI GPU platform revenue reaching $147 billion by 2030 on 15% share of the data center AI accelerator TAM. Bank of America raised its 2030 server CPU market forecast to more than $210 billion, up from $170 billion this week and kept Advanced Micro Devices as its top pick.
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