Broadcom's financing of customer purchases (e.g., Anthropic) suggests lower quality/sustainability of sales and weaker organic demand than surface metrics imply.

We have some interesting news for AI and Broadcom investors, more specifically with the emergence of details about an agreement between Anthropic and Broadcom , which I think is important for all Broadcom investors to understand, and I think it is important for all AI investors as well, because it has broader implications than just these two companies involved.

According to Reuters, Broadcom is lending up to $42 billion to Anthropic in order to build its infrastructure. In contrast, Anthropic is expected to spend so much on Broadcom technologies that the cloud developer will become the chip designer's largest computing customer by 2027.

So, Broadcom is already one of the most borrowed semiconductor companies . Following its recent acquisition of VMware, Broadcom still has debts of around $50 billion , so this will increase the company's liability exposure, but Broadcom also generates very profitable cash flows from its operations.

In fact, for 2026, I estimate the company will generate $50 billion in cash flow. In 2027, I estimate the company will generate $90 billion in free cash flow, and in 2028, I estimate it will generate $123 billion in free cash flow .

Remember that Broadcom operates an asset-light business model . It does not carry out any manufacturing operations within the company. He even made that commitment to companies like Taiwan Semiconductor Manufacturing Company (TSMC).

This allows Broadcom to operate on a relatively asset-light model, and therefore it generates a large free cash flow. Therefore, it has the funds that it can use to gain a strategic position as a major player in the artificial intelligence ecosystem.

I don't know if Broadcom is one of those companies. As I mentioned, they have significant debts, so this is a category where they could have used this capital to pay off their existing debts.

Instead, they use this capital to encourage and facilitate more purchases from one of their key customers.

The way I see it is that the quality of sales is not high, the sustainability of these sales is not great, and the demand, that is, the organic demand for Broadcom products, is not as high as it may appear on the surface.

This is what is happening with Broadcom, Nvidia, AMD and many other such companies, like Microsoft, which are signing deals and selling their products and services to customers, and those customers include Anthropic and OpenAI.

Therefore, suppliers such as Broadcom, Nvidia, and others, who allow these companies to indebt them or give them shares instead of paying cash for their products , feel comfortable and confident that they will get their money back.