AVGO

브로드컴
Broadcom Inc. · CIK 1730168
AVGO 리스크 변화 알림 받기
이번 보고서
2026.08 분기보고서
10-Q · 기간 말 2026. 8. 2. · 제출 2026. 9. 10.
비교 기준
2026.05 분기보고서
10-Q · 기간 말 2026. 5. 3.
SEC 원문 ↗
0
새 리스크 항목
0
신규 문단
28
수정 문단
3
삭제
+1%
분량 변화
AI 한국어 요약

한 줄 요약

브로드컴은 'AI XPV 플랫폼' 등 고객 금융 지원과 보증으로 생기는 거래상대방 신용·자산가치 리스크, 그리고 AI 투자 '거품'과 고객의 자금 조달 차질 가능성을 새로 명시하며 AI 수요 지속성에 대한 경고를 강화했습니다.

주목할 변화

  • 신규AI XPV 플랫폼과 거래상대방·자산가치 리스크고객의 AI 인프라 대금 조달 수단으로 "our AI XPV platform"을 여러 섹션에서 처음 명시했습니다. 이런 거래는 이제 가능성이 아니라 "we have entered and may continue to enter" 상태로 바뀌었고, 위험도 "counterparty credit risk and a decrease in value of the underlying assets"(거래상대방 신용위험과 기초자산 가치 하락)로 구체화됐습니다.
  • 강화AI 투자 '거품'과 고객 자금 조달 우려AI 업황 호조가 지속되지 않을 이유로 "a market correction, the perceived existence of an AI spending 'bubble'"을 추가했습니다. 거시경제 섹션에도 고객 등 AI 인프라 참여자가 "obtain financings necessary for their anticipated capital expenditures"(예정된 설비투자 자금 조달)에 어려움을 겪을 수 있다는 문장이 새로 들어갔습니다. 고객 주문 감소 사유에는 "delayed or cancelled AI infrastructure buildouts"가 추가됐습니다.
  • 강화보증·백스톱이 신용등급에 미칠 영향신용등급 하락 원인으로 "including due to backstops or guarantees and other financing arrangements"를 명시했습니다. 그 결과 "restrict our ability to obtain financing at favorable rates"(유리한 조건의 자금 조달 제약)가 생길 수 있다고 추가했습니다. 보증 의무도 "may impose and have imposed"로 바뀌어, 이미 부과된 사실을 강조했습니다.
  • 강화메모리 칩 등 핵심 부품 공급 제약웨이퍼 생산 요건에 "critical components... such as memory chips"를 추가했고, 위탁생산업체의 제약을 "capacity and memory constraints"로 확대했습니다. 원가 상승분을 "unable to pass on"(가격에 전가하지 못하면) 매출총이익률이 훼손될 수 있다는 문장도 새로 넣었습니다. 위탁생산업체와 "long-term capacity commitments"를 맺을 수 있다고도 밝혔습니다.
  • 강화상위 고객 집중도 상승상위 5개 최종 고객 매출 비중이 약 45%에서 약 50%로 높아졌습니다. 고객 이탈 시 영향 범위에도 "stock price"가 추가됐습니다.
  • [변경] 매출총이익률 결정 요인 재정의기존 요인 중 "price erosion, level of capacity utilization and commodity prices"를 빼고 "spending priorities, supply constraints"를 넣었습니다. 회사가 보는 마진 압박 요인이 가격 하락보다 공급 제약 쪽으로 옮겨갔음을 보여줍니다.
  • 완화소프트웨어 계약 해지 리스크고객이 "may have the right to terminate"라는 표현과 해지 시 선불금 환불 리스크 항목을 삭제했습니다. 대신 계약이 "generally do not permit termination for convenience"(일반적으로 임의 해지 불가)라고 명시했습니다.

읽는 법

이번 변화의 핵심은 브로드컴이 칩 판매를 넘어 고객의 AI 인프라 자금 조달까지 직접 떠안는 구조가 실제로 진행 중이라는 점입니다. 회사는 이에 따른 신용위험, 자산가치 하락, 신용등급 영향을 처음으로 구체적으로 적었습니다. 동시에 'AI 거품' 가능성과 고객의 자금 조달 차질을 명시해, AI 수요가 고객의 재무 여력에 달려 있다는 점을 더 분명히 했습니다. 향후 공시에서는 AI XPV 플랫폼 관련 보증 규모, 상위 고객 집중도, 메모리 공급 상황이 어떻게 드러나는지 함께 살펴볼 만합니다.

원문 비교
  1. 수정Adverse global economic conditions could have a negative effect on our business, results of operations and financial condition and liquidity.
    A general weakening of the economy globally or in a particular region or industry, uncertainty and volatility in financial markets, efforts of governments to stimulate or stabilize the economy or to achieve specific policy objectives such as onshoring of semiconductor manufacturing and other unfavorable changes in economic conditions, such as inflation, higher interest rates, tightening of the credit markets, recession or slowing growth, as well as an increase in geopolitical conflicts, trade tensions and related tariffs with U.S. trading partners, could negatively impact our business, financial condition, cash flows and liquidity. In addition, unfavorable or volatile economic conditions or credit markets could adversely affect the ability of our customers and other AI infrastructure participants to obtain financings necessary for their anticipated capital expenditures which could adversely affect our business, financial condition, cash flows and liquidity. Adverse global economic conditions have from time to time caused or exacerbated significant slowdowns in the industries and markets in which we operate, which have adversely affected our business and results of operations. Macroeconomic weakness and uncertainty may also make it more difficult to accurately forecast operating results, and market volatility stemming from current macroeconomic events may materially impact our cash flow and our ability to raise or refinance debt at favorable rates. An escalation of trade tensions between the U.S. and its trading partners may continue to result in trade restrictions and increased protectionism on both ends that harm our ability to participate in some markets or compete effectively.
  2. 수정We operate in a highly cyclical semiconductor industry that is undergoing profound change due to AI.
    The semiconductor industry is highly cyclical and is subject to rapid price increase or erosion, wide fluctuations in product supply and demand, constant and rapid technological change and evolving technical standards and product applications. The semiconductor industry is undergoing profound change due to the adoption and proliferation of AI and has experienced a significant upturn, which may not be sustainable. sustainable due to a market correction, the perceived existence of an AI spending "bubble" or other factors. The growth of AI is creating pressure on the semiconductor industry to timely design, manufacture and deliver semiconductor products and solutions to meet customer demand for computing power and AI infrastructure. If our AI customers substantially reduce their expansion business or AI infrastructure plans, substantially cancel, reduce or delay their orders, or are unable to generate the a profit required to offset support their spending or are otherwise unable to meet their obligations and we cannot offset the downturn in their business, expenditures, it could have a material adverse effect on our business, operating results, financial condition and condition, results of operations, cash flow or stock price. Some In addition, some of these AI customers may have constrained resources or capital and may be unable to pay for their required AI infrastructure and/or seek utilize alternative financing arrangements arrangements, including through our AI XPV platform, or novel or deferred payment models from their vendors and suppliers, which could result in cause additional counterparty credit or customer default risks risk and may negatively impact our business, financial condition or results of operations.
  3. 수정A significant reduction in demand from certain customers or loss of one or more of our significant customers may adversely affect our business.
    We have historically depended on a small number of end customers, original equipment manufacturers (“OEMs”), their respective contract manufacturers (“CMs”) and certain distributors for a majority of our business and revenue. For the two three fiscal quarters ended May 3, August 2, 2026, sales to distributors accounted for 56% of our net revenue. We believe aggregate sales, through all channels, to our top five end customers accounted for approximately 45% 50% of our net revenue for the two three fiscal quarters ended May 3, August 2, 2026. This customer concentration increases the risk of quarterly fluctuations in our operating results and our sensitivity to any material adverse developments experienced by these customers. In addition, some customers may cancel, reduce or delay their orders or decline to purchase from us due to reduced capital expenditure spending, changes in their business strategy, lack of access to sufficient capital, delayed or cancelled AI infrastructure buildouts, downturn in their business, governmental actions such as being designated a “supply chain risk,” purchases from our competitors or their internal development of competing products or customer-owned tooling.
  4. 수정A significant reduction in demand from certain customers or loss of one or more of our significant customers may adversely affect our business.
    When our semiconductor customers agree to purchase specific quantities of products or source an agreed portion of their product needs from us, such arrangements often include pricing schedules or methodologies that apply regardless of the volume of products purchased, and those customers from time to time may not or do not purchase the amount of product we expect. Moreover, our top customers, including our AI solutions customers, may make and have made greater demands on us with regards to pricing and contractual terms, such as seeking to lease our custom AI accelerators or XPUs or requiring us to purchase and then lease to them full AI racks or systems based on our XPUs instead of purchasing these chips or racks directly, as well as alternative financing arrangements for such leases leases, including through our AI XPV platform, or other novel or deferred payment models. As a result, we may not generate the amount of revenue or free cash flow or achieve the level of profitability that we or investors expect under such arrangements. In addition, such arrangements have and may impose and have imposed financial obligations, including backstops or guarantees, upon us or increase our exposure to counterparty credit or customer default risks, risk and a decrease in value of the underlying assets, failure to mitigate these risks could negatively impact our business, financial condition or results of operations. The loss of, or any substantial reduction in our sales to, any of our top customers, including our customers for our custom AI accelerators or XPUs or AI racks or systems based on our XPUs, could have a material adverse effect on our business, financial condition, results of operations operations, cash flows and cash flows. stock price.
  5. 수정A slow or the unsuccessful return on our investments in research and development, expansion of our business strategy or adoption of new business models could materially adversely affect our business, financial condition, cash flows and margins.
    The industries in which we compete are characterized by rapid technological change, new technological developments such as AI and cloud computing, changes in customer requirements, frequent new product introductions and enhancements, short product cycles, including due to AI-generated efficiencies, evolving industry standards, and new delivery methods, and subject to market conditions. To compete successfully in the semiconductor industry, we must continue to develop and respond to technological advancements and requirements, such as lower power consumption, higher bandwidth and large compute clusters, and we have, from time to time, evolved our business strategy and adopted new business models to address the needs and challenges of our customers and market conditions. Failure to successfully develop increasingly advanced technologies, including our custom AI accelerators or XPUs, network switches and other AI-related products, could impair our competitive position.
  6. 수정A slow or the unsuccessful return on our investments in research and development, expansion of our business strategy or adoption of new business models could materially adversely affect our business, financial condition, cash flows and margins.
    In order to remain competitive, we have made, and expect to continue to make, significant investments in research and development, evolve our business strategy and adopt new business models. If we fail to timely develop new and enhanced products and technologies, if we focus on technologies that do not become widely adopted, if new competitive technologies that we do not support become widely accepted, if we are unable to successfully evolve our business strategy or execute on our new business models such as those that enable our customers to access additional compute capacity, including through the purchase and leasing of AI racks or systems, or our customers proceed with customer-owned tooling, the demand for our products and solutions such as our custom AI accelerators or XPUs, network switches or other AI-related products may be reduced. To support our new business strategies or models, we have entered and may continue to enter into purchasing, leasing or other arrangements with customers or other third-parties that could increase our costs and operational complexity. third-parties. These arrangements could increase our costs and operational complexity and our exposure to counterparty credit risk and a decrease in value of the underlying assets. Slow or unsuccessful investments in our research and development efforts or expansion or modification of our business strategies and models and incurring significant expenses for these actions, would have a negative impact on our business, financial condition, cash flow and margins.
  7. 수정Dependence on contract manufacturing and suppliers of critical components within our supply chain may adversely affect our ability to bring products to market, damage our reputation and adversely affect our results of operations.
    We operate a primarily outsourced manufacturing business model that principally utilizes CMs, such as third-party wafer foundries. Our semiconductor products require wafer manufacturers with state-of-the-art fabrication equipment and techniques, techniques and critical components within our supply chain, such as memory chips, and most of our products are designed to be manufactured in a specific process, typically at one particular fab or foundry, either our own or with a particular CM. Qualifying and establishing reliable production at acceptable yields with a new CM, if at all, is a lengthy and often expensive process.
  8. 수정Dependence on contract manufacturing and suppliers of critical components within our supply chain may adversely affect our ability to bring products to market, damage our reputation and adversely affect our results of operations.
    We depend on our CMs to allocate sufficient manufacturing and packaging capacity and critical components to meet our needs, to produce products of acceptable quality at acceptable yields and prices, and to deliver those products to us on a timely basis. We do not generally have may enter into long-term capacity commitments with our CMs and substantially all of CMs, but generally our manufacturing services are on a purchase order basis with no minimum quantities. Further, from time to time, our CMs may raise their prices, or cease to, to or become unable to, to manufacture a component for us, and have had and may continue to have capacity and memory constraints in times of unprecedented demand. Our CMs may also fail to timely develop or successfully implement new, advanced manufacturing processes, including transitions to smaller geometry process technologies.
  9. 수정Dependence on contract manufacturing and suppliers of critical components within our supply chain may adversely affect our ability to bring products to market, damage our reputation and adversely affect our results of operations.
    During the two three fiscal quarters ended May 3, August 2, 2026, approximately 95% of the wafers manufactured by our CMs were produced by Taiwan Semiconductor Manufacturing Company Limited (“TSMC”). We believe our wafer requirements represent a meaningful portion of TSMC’s total production capacity. However, TSMC also fabricates wafers for other companies, including some of our competitors, and could choose or be required to materially prioritize capacity for other customers or reduce or eliminate deliveries to us on short notice. In addition, TSMC has raised, and may in the future raise, their prices to manufacture our wafers.
  10. 수정Dependence on contract manufacturing and suppliers of critical components within our supply chain may adversely affect our ability to bring products to market, damage our reputation and adversely affect our results of operations.
    If any of the foregoing circumstances occur, we may be unable to meet our customers’ demand, or to the same extent as our competitors, fail to meet our contractual obligations or forgo revenue opportunities. This could damage our relationships with our customers, result in litigation for alleged failure to meet our obligations, or result in payment of significant damages, and our net revenue could decline, adversely affecting our business, financial condition, condition and results of operations and operations, including gross margin.
  11. 수정We purchase a significant amount of the materials, including components, used in our products from a limited number of suppliers.
    Our manufacturing processes and those of our CMs rely on many materials, including memory chips, silicon, gallium arsenide and indium phosphide (“InP”) wafers, copper lead frames, precious and rare earth metals, mold compound, ceramic packages, various chemicals and gases, and other components. During the two three fiscal quarters ended May 3, August 2, 2026, we purchased more than three-quarters of our manufacturing materials from five materials suppliers, some of which are single source suppliers. The lead time needed to identify and qualify a new supplier is typically lengthy and there is often no readily available alternative source. We do not generally have long-term contracts with our materials suppliers and substantially all of our purchases are on a purchase order basis. Suppliers have previously, and may in the future, extend lead times, limit supplies, place products materials on allocation, increase prices, or prioritize supplies for other customers, including with respect to memory chips, any of which could disrupt have previously disrupted supply or increase increased demand in the industry and negatively impact our results of operations and our ability to fully meet our customers’ demand. industry. If we are unable to timely obtain sufficient quantities of materials, or we are unable to pass on increases in the cost of materials, we may be unable to fully meet our customers’ demand and our results of operations, including gross margin, may be negatively impacted. Additionally, the supply of these materials has been, from time to time, impacted by increased trade tensions between the U.S. and its trading partners, particularly China, and the uncertainty due to evolving trade restrictions. Any such supply constraints could result in loss of revenue opportunities and adversely impact our business, financial condition and results of operations.
  12. 수정Winning business in the semiconductor solutions industry is an unpredictable process that is often lengthy and requires us to incur significant expenses, evolve our business strategy or adopt a new business model, which may negatively impact our results of operations, gross margin or cash flows.
    The timing of design wins is unpredictable and implementing production for a particular design win or multiple design wins at the same time, such as for our custom AI accelerators or XPUs, network switches and other AI-related products, may strain our resources and those of our CMs. Some of our customers who have selected us may also have constrained resources or capital but require immediate availability of our custom XPUs. We have dedicated, and expect to continue dedicating, significant additional resources to evolve our business strategy or execute on our new business models such as those that enable our customers to access additional compute capacity with alternative financing arrangements arrangements, including through our AI XPV platform, or novel or deferred payment models, which could result in additional costs, expenses, counterparty credit or customer default risks, risk, and reduced gross margin and cash flows.
  13. 수정Failure to adjust our manufacturing and supply chain to meet customer demand could adversely affect our results of operations.
    We make significant decisions, including determining the levels of business that we will seek and accept, production schedules, levels of reliance on CMs and outsourcing, internal fabrication utilization and other resource requirements, and evolving our business strategy or adopting new business models such as those that enable our customers to access additional compute capacity, including through the purchase and leasing of AI racks or systems based on our XPUs, based on customer requirements or estimates thereof, which may not be accurate and could result in reallocation of resources. rapidly change. Many factors could impact our estimates of customers’ demands, including changes in product development cycles, competing technologies and product releases, new or unexpected end-user products or applications, such as demand for AI-related products and solutions, and changes in business, regulatory, market and economic conditions. Our customers may also underestimate or be unable to obtain or develop the data center infrastructure or related power or water capacity needed to address end-user demand, which may impact our ability to timely satisfy their requirements. In addition, where our products are part of larger infrastructure projects like data centers, any supply constraints or availability issues with respect to any one component may impact our revenue or our results of operations. The Creating Helpful Incentives to Produce Semiconductors for America Act could also result in an increase in supply leading to excess inventory and a decrease in average selling prices. If we are unable to timely respond to changes in customer demand or execute on new business strategies or models, this could damage our customer relationships, harm our reputation, prevent us from taking advantage of opportunities and adversely impact our business, financial condition and results of operations.
  14. 수정Our gross margin is dependent on a number of factors, including our product mix, spending priorities, supply constraints and adoption of a new business model.
    Our gross margin is dependent on a number of factors, including our product mix, spending priorities, supply constraints and adoption of a new business model, price erosion, level of capacity utilization and commodity prices. model.
  15. 수정Cybersecurity threats or other security breaches, or any other impairment of the confidentiality, integrity or availability of our IT systems, or those of one or more of our corporate infrastructure vendors, could have a material adverse effect on our business.
    As a critical vendor in the digital supply chain for both governmental entities and critical infrastructure operators, we and our products may be targeted by those seeking to threaten the confidentiality, integrity and availability of systems supporting essential public services. services, which could have a material adverse effect on our business, profitability and financial condition. Geopolitical instability has increased and may continue to increase the likelihood that we will experience direct or collateral consequences from cyber conflicts between nation-states or other politically motivated actors targeting critical technology infrastructure.
  16. 수정Cybersecurity threats or other security breaches, or any other impairment of the confidentiality, integrity or availability of our IT systems, or those of one or more of our corporate infrastructure vendors, could have a material adverse effect on our business.
    Accidental or willful security breaches or other unauthorized access to our information systems or the systems of our service providers and business partners, or the existence of computer viruses or malware (such as ransomware) in our or their data or software have in the past exposed, and could in the future expose, us to a risk of information loss, business disruption, and misappropriation of proprietary and confidential information, including information relating to our products or customers and the personal information of our employees or third parties. Such an event incident or delay in our mitigation or remediation of such incident could result in, among other things, unfavorable publicity, damage to our reputation, loss of our trade secrets and other competitive information, litigation by affected parties and possible financial obligations for liabilities and damages related to the theft or misuse of such information, significant remediation costs, disruption of key business operations and significant diversion of our resources, as well as fines and other sanctions resulting from any regulatory non-compliance, any of which could have a material adverse effect on our business, profitability and financial condition. While we may be entitled to damages if our vendors fail to perform under their agreements with us, any award may be insufficient to cover the actual costs incurred by us and, as a result of a vendor’s failure to perform, we may be unable to collect any damages.
  17. 수정Cybersecurity threats or other security breaches, or any other impairment of the confidentiality, integrity or availability of our IT systems, or those of one or more of our corporate infrastructure vendors, could have a material adverse effect on our business.
    Despite our internal controls and investment in security measures, we have, from time to time, been subject to disruptive cyber-attacks and unauthorized network intrusions and malware on our own IT networks or those of our service providers or business partners. Although no such cybersecurity incidents have been material to us, we continue to devote resources to protect our systems and data from unauthorized access or misuse, and we may be required to expend greater resources in the future. Businesses we acquire have previously increased, and may continue to increase, the scope and complexity of our
  18. 수정Cybersecurity threats or other security breaches, or any other impairment of the confidentiality, integrity or availability of our IT systems, or those of one or more of our corporate infrastructure vendors, could have a material adverse effect on our business.
    Businesses we acquire have previously increased, and may continue to increase, the scope and complexity of our IT networks, and this has, from time to time, increased our risk exposure to cyber-attacks when there are difficulties integrating diverse legacy systems that support operations for the acquired businesses.
  19. 수정We may be unable to maintain appropriate manufacturing capacity or product yields at our own manufacturing facilities, which could adversely affect our relationships with our customers, and our business, financial condition and results of operations.
    We must maintain appropriate capacity and product yields at our own manufacturing facilities to meet anticipated customer demand. From time to time, this requires us to invest in new, expanded or improved facilities, which may not be sufficient or in time, to meet customer demand and we may have to put customers on product allocation, forgo sales or lose customers as a result. Conversely, if we overestimate customer demand, we would experience excess capacity and fixed costs at for these facilities will not be fully absorbed, which could adversely affect our results of operations. Similarly, reduced product yields, due to design or manufacturing issues or otherwise, may involve significant time and cost to remedy and cause delays in our ability to supply product products to our customers, all of which could cause us to forgo sales, incur liabilities or lose customers, and harm our results of operations.
  20. 수정We are subject to risks associated with our distributors and other channel partners, including product inventory levels and product sell-through.
    We sell our products through a direct sales force and a select network of distributors and other channel partners globally. Sales to distributors accounted for 56% of our net revenue in the two three fiscal quarters ended May 3, August 2, 2026 and are subject to a number of risks, including:
  21. 수정Failure to enter into software license agreements on a satisfactory basis could materially adversely affect our business.
    Many of our existing software customers have multi-year enterprise software license agreements, some of which involve substantial aggregate fee amounts. These customers often do not have a contractual obligation to purchase additional solutions and may have the right to terminate. solutions. The failure or inability to renew customer agreements of similar scope, on terms that are commercially attractive to us, could materially adversely affect our business, financial condition, operating results and cash flow. In addition, the relative volume of our customer agreements signed with the right to terminate generally do not permit termination for convenience and accounting for such contracts can cause material variations in revenue recognized in each period and our operating results to fluctuate from time to time.
  22. 수정Our use of open source software in certain software and services could materially adversely affect our business, financial condition, operating results and cash flow.
    Many of our software solutions and services incorporate open source software, the use of which may subject us to certain conditions, including the obligation to offer proprietary source code in such software for no cost or to make the proprietary source code of such software publicly available. Open source licenses are generally “as-is” and do not provide warranties, support or assurance of title or controls on origin, which may expose us to potential liability if the software fails to work or has security vulnerabilities.
  23. 수정Competition in our industries could prevent us from growing our revenue.
    The industries in which we operate are highly competitive and characterized by rapid technological changes, evolving industry standards, changes in customer requirements, often aggressive pricing practices and, in some cases, new delivery methods. Competition in these industries continues to increase as existing competitors improve or expand their product offerings, as new competitors, including our customers, enter our markets or as AI continues to advance and be integrated into the markets in which we compete. To remain competitive, we seek to evolve our business strategy or adopt new business models from time to time, such as those that enable our customers to access additional compute capacity, that may require significant financial resources, which could have a material adverse effect on our results of operations. Moreover, we may offer and have offered alternative financing arrangements arrangements, including through our AI XPV platform, or other novel or deferred payment models for the leasing of AI racks or systems based on our XPUs to effectively compete, which could have a material adverse effect on our revenue, free cash flow and gross margin and expose us to counterparty credit or customer default risks. risk.
  24. 수정We may be involved in legal proceedings, including IP, securities litigation, and employee-related claims, which could, among other things, divert efforts of management and result in significant expense and loss of our IP rights.
    The industries in which we operate are characterized by companies holding large numbers of patents, copyrights, trademarks and trade secrets and vigorously pursuing, protecting and enforcing IP rights, including actions by patent-holding companies that do not make or sell products. From time to time, third parties assert against us and our customers and distributors their IP rights to technologies that are important to our business. We may be required to indemnify our customers or purchasers for third-party IP infringement claims, including defense costs and damages on adverse rulings, while our CMs and suppliers are not always obligated to indemnify us in turn. Claims of this sort could also harm our relationships with our customers and might deter future customers from doing business with us. If any pending or future proceedings result in an adverse outcome, we could be required to:
  25. 수정Our substantial indebtedness could adversely affect our financial health and our ability to execute our business strategy.
    From time to time, we require significant expenditures to support our growth and respond to business challenges, and as a result we have additional cash requirements to support the payment of interest on our outstanding indebtedness. As of May 3, August 2, 2026, the aggregate indebtedness was $66,720 $61,079 million. Our substantial indebtedness and the instruments governing our indebtedness could have important consequences including:
  26. 수정Our substantial indebtedness could adversely affect our financial health and our ability to execute our business strategy.
    Furthermore, we have entered into and may enter into financing arrangements where we provide a backstop or a guarantee to support our strategic initiatives or other corporate purposes, which could increase our fixed obligations, expose us to additional counterparty credit risk and a decrease in value of the underlying assets, have a negative impact on our financial condition and reduce our financial and business flexibility.
  27. 수정Our substantial indebtedness could adversely affect our financial health and our ability to execute our business strategy.
    We receive debt ratings from the major credit rating agencies in the U.S., and any downgrade in our credit rating or the ratings of our indebtedness, including due to backstops or guarantees and other financing arrangements, or adverse conditions in the debt capital markets, could materially adversely affect our business, financial condition and results of operations. operations and restrict our ability to obtain financing at favorable rates. In addition, the current market volatility may adversely impact our ability to manage our debt, including through borrowing at favorable interest rates or due to reduced cash flows.
  28. 수정Our stock price has been, and may in the future be, volatile and your investment could lose value.
    •announcements of, or expectations of, additional debt or equity financing transactions; transactions or other financing arrangements;
  29. 문장 삭제A slow or the unsuccessful return on our investments in research and development, expansion of our business strategy or adoption of new business models could materially adversely affect our business, financial condition, cash flows and margins.
    Failure to successfully develop increasingly advanced technologies, including our custom AI accelerators or XPUs, network switches and other AI-related products, or evolve our business strategy or execute on our new business models such as those that enable our customers to access additional compute capacity or address fluctuating market conditions, including through the purchase and leasing of AI racks or systems, could impair our competitive position.
  30. 삭제Our operating results are subject to substantial quarterly and annual fluctuations.
    •the timing of any terminations of software contracts that require us to refund to customers any pre-paid amounts under the contract;
  31. 문장 삭제We may be involved in legal proceedings, including IP, securities litigation, and employee-related claims, which could, among other things, divert efforts of management and result in significant expense and loss of our IP rights.
    We may be required to indemnify our customers or purchasers for third-party IP infringement claims, including costs to defend those claims, and payment of damages in the case of adverse rulings. However, our CMs and suppliers may or may not be required to indemnify us should we or our customers be subject to such third-party claims.