Fitch affirms Broadcom at ’A-’ with positive outlook despite AI backstop risks

Investing.com -- Fitch Ratings affirmed Broadcom Inc (NASDAQ:AVGO) Long-Term Issuer Default Rating at 'A-' on Tuesday while maintaining a Positive outlook, signaling that surging artificial intelligence demand continues to strengthen the chipmaker's balance sheet despite expanding exposure to off-balance-sheet financing arrangements. The agency indicated that strong cash generation and operating momentum should keep core EBITDA leverage below its 1.5x upgrade threshold, even as complex customer backstops introduce incremental credit risk. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%.