Broadcom (AVGO) Is Seen As Resilient To 32 Gigawatt Power Shortfalls

What happened: Morgan Stanley flags Broadcom (NasdaqGS:AVGO) as relatively resilient to U.S. data-center power shortages affecting AI buildouts, citing diversified regional demand, tracking of AI rollouts, and ties to utilities and data-center operators. Key numbers: 32-gigawatt U.S. Why it matters: The bank frames the power gap as a risk for many AI hardware suppliers, while arguing Broadcom's AI XPU and networking pipeline is better insulated than peers such as Nvidia or Micron. Power caps still threaten AI build timing, and margin pressure from lower gross margin XPUs persists. Market: -4.3% by next close ($360.14 on Oct 8), -0.2% YTD

Morgan Stanley flags Broadcom (NasdaqGS:AVGO) as relatively resilient to U.S. data-center power shortages affecting AI buildouts, citing diversified regional demand, tracking of AI rollouts, and ties to utilities and data-center operators.

The bank frames the power gap as a risk for many AI hardware suppliers, while arguing Broadcom's AI XPU and networking pipeline is better insulated than peers such as Nvidia or Micron. Power caps still threaten AI build timing, and margin pressure from lower gross margin XPUs persists. Market: -4.3% by next close ($360.14 on Oct 8), -0.2% YTD