Intel Corporation (NASDAQ: INTC) and Broadcom Inc. (NASDAQ: AVGO) executives warned at the DBS Asia Future Forward Conference in Singapore that access to financing could become a significant bottleneck for artificial intelligence expansion, potentially overshadowing issues like chip shortages or electricity availability.
Broadcom CEO Hock Tan stated that capital access is expected to become a bigger obstacle than supply constraints. He projected that computing demand will exceed supply through 2029, potentially extending into 2030. Intel CEO Lip-Bu Tan echoed these concerns, highlighting rising financing costs and uncertainty regarding investment returns. Tan urged companies to improve efficiency and develop business models that deliver tangible returns.
The warnings follow a sharp slowdown in AI-related borrowing. Global AI-related debt issuance fell to $23 billion in September, according to Morgan Stanley data cited by the Financial Times. This figure was less than half of the $113 billion recorded in June. Morgan Stanley attributed the decline to substantial borrowing earlier in the year, noting that the firm had forecast nearly $570 billion in AI-related debt issuance for 2026.
Despite the slowdown, major financing deals remain planned. Space Exploration Technologies Corp. (NASDAQ: SPCX) reportedly plans to raise $40 billion to purchase NVIDIA Corporation (NASDAQ: NVDA) chips, with Apollo Global Management, Inc. (NYSE: APO) expected to lead the financing. Additionally, banks are arranging a $60 billion financing package tied to Broadcom’s chip deals with Anthropic.
Bank of America Securities analyst Tom Curcuruto estimates that Broadcom’s AI financing vehicle could support about $370 billion of senior debt by mid-2029 at a 20-gigawatt scale. This includes roughly $150 billion of new issuance in 2027. However, the analyst noted that Broadcom assumes risk by backstopping customer lease obligations, with its initial transaction exposing the company to as much as $29 billion.
