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Broadcom's plan to guarantee debt in an SPV that buys its own chips creates circular financing where the chipmaker effectively finances its customers, a structural risk for investors.

Science and Technology Partners views the $220B+ AI infrastructure debt issuance (2x YoY) as creating indigestion and circular financing risks, but maintains 3-5 year horizon seeing extraordinary opportunity in optical interconnect, robotics, space, and healthcare diagnostics with favorable regulatory tailwinds.

Despite $220B+ AI infrastructure debt issuance YTD (2x 2025) causing market indigestion, the fund is deploying capital into optical interconnect, robotics, space exploration, and AI-driven healthcare diagnostics where regulatory/reimbursement tailwinds are emerging.

Broadcom's plan to raise $60B+ debt through an SPV with Blackstone and Apollo to finance customer chip purchases creates circular financing risk, while broader AI infrastructure debt issuance faces market indigestion, regulatory delays, and labor shortages.