AVGO ▼ -4.0% - Broadcom Inc. Morgan Stanley forecasts AI infrastructure spending reaching $1.58 trillion in 2027, generating roughly 24% of S&P 500 revenue growth, while AI-related companies are projected to drive 78% of index earnings growth. * Nvidia exposure: Roughly $1 trillion of 2027 AI spending is projected to flow into S&P 500 revenue, with ($NVDA) Nvidia accounting for approximately $690 billion of that modeled total. * Current earnings: AI beneficiaries and the Magnificent Seven account for 61.4% of projected Q3 2026 S&P 500 earnings growth. Micron ($MU) contributes 18.8%, Nvidia ($NVDA) 15%, Meta ($META) 6.9% and Broadcom ($AVGO) 5%. * Latest estimates: FactSet projected 29% Q3 earnings growth as of October 16, versus 27% in Morgan Stanley's chart. * AI spending: Morgan Stanley forecasts capex rising from $980 billion in 2026 to $1.58 trillion in 2027 (+60%) and $1.81 trillion in 2028. * Revenue growth: AI spending represents about 5% of projected 2027 index sales. Excluding its contribution, estimated revenue growth falls from 8.6% to 6.6%. * Lease financing: The forecasts include $195 billion in 2027 lease capex, rising to $246 billion in 2028. Hyperscalers have over $1.1 trillion in pending lease commitments. * Debt risks: A separate report estimates half of projected AI investment will be debt-financed. Rising borrowing costs and credit-market stress could threaten expansion plans, particularly among heavily indebted neocloud providers. 18-OCT-2026 01:39 PM ET