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As artificial-intelligence players clamor for more computing capacity, Broadcom’s stock has been a big winner this year. But the rally is cooling Friday as Wall Street seeks to better unpack the nuances of its customer momentum.
Heading into Thursday afternoon’s earnings report, investors were excited about the budding business relationship between Broadcom
AVGO and OpenAI. So the company’s disclosure of a $73 billion backlog for AI offerings that will be delivered within 18 months “was potentially disappointing given the publicly announced agreement with OpenAI was expected to begin within that time frame and we think is not contributing materially to the figure,” according to TD Cowen analyst Joshua Buchalter.