Hock Tan, CEO of Broadcom, said Monday in Singapore: “A lot of investors have no clue what they’re investing in.” They set “very extreme expectations, only to find out that it’s almost like they’re in a casino.”
He does not see chips, memory, or power as the industry’s real bottleneck: “What I think might be the biggest constraint is capital.”
Broadcom forecasts for the fiscal year 2028 AI semiconductor revenue of $230 billion, up from $58 billion this year—a fourfold increase (+396.5%), for which, in his words, the supply is secured.
The capital shortage is now affecting Broadcom as well, and the company is resolving it on its own: Anthropic’s IPO prospectus indicates that it up to $42 billion with Broadcom as a convertible bond from Broadcom. Thus, Broadcom is effectively financing its own chips.
All in all, , this “casino” statement is not a warning about AI expansion, but rather a description of its biggest bottleneck—and that bottleneck lies not in the technology, but in the balance sheet. The statement can also be seen as an argument to justify the—rightly criticized—recycling of funds for AI expansion.
Sources:
https://www.cnbc.com/2026/10/01/broadcom-lending-anthropic-42-billion-chips-reuters.html
