The American technology company Broadcom is negotiating to raise between $70 billion and $80 billion in debt financing for a deal related to chip production, CNBC reports. This move will allow Broadcom to join the ranks of tech giants like Oracle and Amazon, which have also sought borrowed funds for the development of artificial intelligence infrastructure.
In the wake of the news, Broadcom's shares have fallen by 6% over the week. The decline in stock prices began after the company's key customer, Google, announced a deal with competitor Marvell.
The negative dynamics in the artificial intelligence sector have also put pressure on industrial companies supporting the construction of data centers. Over the past week, shares of GE Vernova and Eaton have dropped by 9.5% and 6.7%, respectively.
Experts link this to potential dissatisfaction from politicians regarding data center projects, including a recent executive order signed by the governor of Pennsylvania, which established strict standards for new projects.
The market's attention is also focused on the upcoming financial reports from Nvidia, CrowdStrike, and Salesforce. Nvidia, a chip manufacturer, is expected to report strong results amid high demand and present details of a plan to raise $500 billion from Wall Street.
As experts evaluate future reports, they raise the question, “Will the market respond to this?” They also note that CrowdStrike's results should be positive due to the growing demand for cybersecurity.
For software developer Salesforce, the current quarter could be crucial following a recent recovery in investor interest in the sector.
