Overview
- Senior executives at Broadcom and Intel warned that access to financing and rising cost of capital may now be the largest constraint on expanding AI infrastructure.
- Both CEOs said demand for compute capacity currently outstrips supply and could remain tighter than supply through the end of the decade.
- Rising bond yields and more expensive debt make funding data centers and high-bandwidth memory chips costlier, which can weaken projects that take years to pay back.
- Broadcom’s CEO said some supply pressures, including wafer and memory shortages and limits on power, may ease by 2028–2029 as new capacity comes online.
- The industry’s near-term growth depends on buyers and their backers continuing to fund large builds and on businesses showing clear ROI from AI, with a small group of hyperscale customers likely to determine the pace of expansion.