Here’s Why I’m Buying Broadcom Even As Concerns About Circular Financing With Anthropic Mount

Quick Read

• Broadcom’s AI semiconductor revenue surged 221% to $16.7B, and management projects $230B by fiscal 2028 at just 12x forward earnings.

• NVIDIA trades near 48x trailing earnings with $108.5B in guarantee obligations, giving Broadcom’s 15-year dividend streak and lower multiple a clear edge.

• Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)

I keep adding to my Broadcom (NASDAQ:AVGO) position, and the growing worry about circular financing with Anthropic just gave me another chance to do it. Every quarter I look for a reason to stop. Every quarter this company gives me a new reason to keep going.

Why I Keep Coming Back

Broadcom co-designs custom AI chips with the few companies building frontier models, then sells them the networking that ties those chips together. That model locks in relationships that run across several chip generations. Management described a…