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The artificial intelligence (AI) trade suddenly had something new to worry about—what if the race to build bigger and better frontier models starts slowing down? That question rattled investors recently after Anthropic CEO Dario Amodei argued over the weekend for moderating the pace of model development. His comments, backed by OpenAI CEO Sam Altman and Elon Musk, quickly put AI infrastructure stocks under pressure as investors began wondering whether slower model development could eventually mean slower demand for the mountains of computing power behind AI.
Semiconductor and software powerhouse Broadcom (AVGO) was caught in that selloff, with shares falling 4.8% on Monday and another 1.6% on Tuesday. And there is a reason that investors were paying close attention—Anthropic is one of Broadcom’s key custom-chip customers and is expected to become its largest in 2027 and remain so in 2028.
