Broadcom (AVGO) Stock Gets $400 Target After $63B Anthropic AI Chip Deal

• Broadcom stock is in focus after a group of financial firms announced $63 billion in financing for Anthropic’s AI computing capacity
• DA Davidson reportedly upgraded AVGO stock to Buy and raised its price target to $400 from $350
• MarketCapOf estimates Broadcom stock would reach $1,092.51 if its market cap matched Nvidia’s, assuming Broadcom’s share count stayed the same

Broadcom has found another way to help get its chips into the hands of one of the world’s biggest AI developers. A group of Wall Street firms is putting together $63 billion in financing for computing capacity that will use its technology. For Broadcom stock investors, the arrangement adds another layer to the company’s growing relationship with Anthropic. It also comes at a moment when the AI company is preparing to open its books to public investors.

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Broadcom’s Anthropic Deal Puts Financing Behind Chip Sales

Bank of America, Blackstone, Citi, and Morgan Stanley announced the financing arrangement with Broadcom on October 26. The transaction is intended to support AI computing capacity for Anthropic using Broadcom’s technology, according to the companies’ announcement.

The financing will be used to buy Broadcom chips and networking equipment for Anthropic. The $63 billion is the size of the financing arrangement, not an amount Broadcom is paying on its own or guaranteed profit from the deal.

The two companies already have a substantial relationship. In April, Anthropic said it was expanding its work with Google and Broadcom to secure next-generation computing capacity.

Analyst Sees Upside for AVGO Stock

Reports revealed that DA Davidson upgraded AVGO stock to Buy from Neutral, raising its price target to $400 from $350. The post cited analyst Gil Luria and linked his outlook to funding prospects for Anthropic and OpenAI.

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At the $329.17 Broadcom stock price used in the post, the $400 target would imply a gain of about 21.5%. The target is an analyst forecast, and the potential return changes as the share price moves.

In addition, Rosenblatt analyst Sajal Dogra previously set a $600 target and a Buy rating, according to reports. The Anthropic IPO adds another piece to the picture. The company has filed to list on Nasdaq under the ticker ANT, giving investors a closer look at its finances as it spends heavily on computing.

Broadcom vs Nvidia: How Do Their Market Values Compare?

Broadcom and Nvidia are both major suppliers to the AI industry. But their businesses have different strengths. Broadcom sells custom AI chips and networking equipment, while Nvidia is best known for its GPUs and computing platform.

According to MarketCapOf, Broadcom had a market capitalization of about $1.58 trillion, compared with Nvidia’s $5.22 trillion. The tool estimates that Broadcom stock would trade at $1,092.51 if its market value matched Nvidia’s, assuming its share count stayed the same. This is about 3.3 times the $330.82 price shown.

At that hypothetical price, 10 AVGO shares would be worth approximately $10,925, compared with about $3,308 at the displayed price. The calculation shows the gap between the companies’ market values, and it doesn’t predict where Broadcom stock will trade.

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