Broadcom Shares Slide After $35B AI Data-Center Pact

Broadcom shares dropped as much as 6.2% on Tuesday before recovering some losses to trade down about 1.3% later in the session after the company unveiled a major AI data-center partnership.

The decline followed last week’s selloff that began after Broadcom reported strong fiscal second-quarter results. The company kept a long-term forecast of more than $100 billion in AI semiconductor revenue by fiscal 2027 and issued third-quarter AI revenue guidance that largely matched analysts’ expectations, prompting profit-taking among AI-related stocks.

The broader market also weighed on the stock. The Nasdaq Composite fell 1.37% as investors shifted toward defensive sectors; the Real Estate Select Sector SPDR rose 2.52% and the Health Care Select Sector SPDR gained 1.47% during the session. Semiconductor names tracked weakness across the tech-heavy index, and Broadcom shares have moved into a consolidation phase after reaching a 52-week high in June.

Technical indicators pointed to cooling momentum. Broadcom traded below its 20-day and 50-day moving averages while remaining above its 100-day and 200-day averages. A golden cross that formed in April continues to support the longer-term trend.

The company announced the AI XPV Platform in collaboration with Apollo Global Management and Blackstone. The platform aims to support more than 20 gigawatts of AI computing capacity through 2028, with Apollo and Blackstone acting as anchor investors. The initiative begins with a $35 billion investment led by Apollo to fund Anthropic’s planned expansion of more than one gigawatt of compute infrastructure.

Anthropic will lease infrastructure from cloud and data-center provider Fluidstack, and the initial capacity is expected to be deployed at Fluidstack-operated facilities beginning in mid-2026. Broadcom expects the platform to scale deployment of its custom AI chips and associated computing systems while reducing the cost and power required to train large AI models. The broader initiative is intended to support other leading AI developers, including OpenAI, by 2028.

Broadcom Chief Executive Hock Tan described the demand for compute as “a historic inflection point where the demand for AI compute is fundamentally reshaping the global economic landscape.” He added the platform allows Broadcom’s rapidly scaling customers, starting with Anthropic, to realize their AI plans with speed and certainty.

Apollo characterized the arrangement as a new model for accelerating infrastructure deployment by combining semiconductor expertise with long-term private capital.

Broadcom remains a major supplier of custom AI chips and networking equipment. The partnership expands the company’s role in supplying and helping customers secure large-scale infrastructure needed for next-generation AI development.