Several Wall Street analysts see Broadcom as a major beneficiary of Anthropic's planned initial public offering and consider the stock attractive to buy now. Anthropic disclosed plans for a Nasdaq listing under the ticker ANT in a Monday S-1 filing. The filing prompted D.A. Davidson to upgrade Broadcom from neutral to buy. D.A. Davidson increased the price target from $350 to $400, implying nearly 22% upside from Monday's close. Broadcom shares gained more than 3% in premarket trading.
D.A. Davidson analyst Gil Luria said Tuesday that the filing supports expectations that Anthropic will complete an IPO and raise capital. Luria expects OpenAI to raise additional capital through an IPO next year, allowing Broadcom to meet expectations over the next couple of years. Luria said Broadcom's valuation of 16 times 2027 earnings per share implies almost no chance of those outcomes. Luria sees substantial upside if both IPOs materialize.
Broadcom is a major partner in Anthropic's infrastructure expansion. Broadcom said Monday that Bank of America, Blackstone, Citi and Morgan Stanley established a special purpose vehicle to finance $63 billion in Broadcom artificial intelligence chips for Anthropic. Anthropic disclosed earlier this month that Anthropic will borrow up to $42 billion from Broadcom to expand AI infrastructure. Anthropic could become one of the largest customers of Broadcom's chip-design business in 2027. Analysts see the reciprocal business relationship as a significant source of potential gains for Broadcom, especially if Anthropic completes an IPO.
Raymond James analyst Simon Leopold said Raymond James anticipated Anthropic deploying another 5 gigawatts of TPU8i capacity in fiscal 2027. Leopold said Raymond James anticipated an additional 10 gigawatts in fiscal 2028. Leopold expects Anthropic to become Broadcom's largest XPU customer in fiscal 2027. Leopold said the IPO filing strongly supports the scale and duration of the opportunity. However, Leopold said Broadcom's potential $42 billion financing commitment represents underappreciated financial exposure, although Broadcom may transfer the commitment to a financial partner.
William Blair analyst Sebastien Naji sees an attractive balance of potential gains and risks for Broadcom shares because of the XPU customer roadmap and likely performance above expectations. Wolfe Research analyst Chris Caso said financing for Anthropic's 2027 Broadcom purchases makes the purchases highly likely to proceed and increases confidence in bullish 2027 and 2028 forecasts throughout the supply chain, benefiting Broadcom and other chip stocks.
LSEG data show that 48 of the 51 analysts covering Broadcom recommend buying or strongly buying the shares. However, Broadcom shares have declined nearly 5% this year and have underperformed the broader market.
Wall Street Analysts Upgrade Broadcom Amid Anthropic's IPO Plans
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Summary
Broadcom received upgrades from Wall Street analysts following Anthropic’s Nasdaq filing under the ticker ANT. D.A. Davidson raised its price target to $400 from $350, citing potential chip sales growth. Analysts at Raymond James and William Blair also pointed to long-term benefits from the partnership. With a blockchain upgrade on the horizon, the network upgrade could further support Broadcom’s position as a key player in AI infrastructure. Financing commitments linked to the IPO may reach $42 billion.
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