Broadcom Inc. (NASDAQ:AVGO) is increasingly being drawn into the market for financing customers, according to Seaport Research Partners.

The Broadcom Analyst: Analyst Jay Goldberg downgraded the rating from Buy to Neutral.

The Broadcom Thesis: The company maintains its position as the leading competitor to Nvidia Corp (NASDAQ:NVDA) for AI compute and faces the same issues as Nvidia, Goldberg said.

Check out other analyst stock ratings.

Advanced Micro Devices Inc (NASDAQ:AMD), Nvidia and Broadcom have been forced to be "involved to varying degrees in supporting the fundraising of the various AI data centers now under construction," he added.

Although Nvidia’s problems are greater than what Broadcom faces, this reflects that the industry is under significant pressure from the "massive spending needs for Gigawatt scale data centers," the analyst stated.

Broadcom’s business is poised for 60% revenue growth this year. Strong ASIC adoption by Alphabet Inc's (NASDAQ:GOOG) Google and Anthropic is driving growth.

"We continue to question the ability for all the announced deployments to scale on expected timelines," he further wrote.

AVGO Price Action: Shares of Broadcom had risen by 3.15% to $344.51 at the time of publication on Wednesday.

Image: Shutterstock