HSBC: $63 Billion Financing to Support Broadcom Compute Deployment, Price Target $560

Per Chaoxiang Research, an HSBC research report dated October 27, 2026 notes that institutions including Bank of America have announced a $63 billion financing transaction. A newly created special purpose vehicle (SPV) will acquire Broadcom AI accelerators and networking solutions and lease them to Anthropic. Broadcom provides residual value support (RVS) with an expected peak exposure of $43 billion.

HSBC estimates that, building on prior $35 billion financing corresponding to over 1 gigawatt of capacity, this transaction will support approximately 1.7 to 1.8 gigawatts of deployment, falling short of management's 5-gigawatt target by May 2027. Subsequent funding continuity will require close attention. The report maintains a Buy rating and $560 price target for Broadcom. Citing HSBC, Broadcom notes that protective factors such as customer payment obligations, asset re-leasing capabilities, and collateral values reduce the likelihood of the residual value support being triggered.