Broadcom's stock has received a boost from the news of Anthropic's initial public offering, which is set to take place on the Nasdaq under the ticker 'ANT.' Following Anthropic's S-1 filing, D.A. Davidson upgraded Broadcom's rating from neutral to buy and raised its price target from $350 to $400, indicating a potential upside of nearly 22%.
Analyst Gil Luria emphasized that the successful IPO could lead to further capital raises for OpenAI, enhancing Broadcom's growth prospects. Shares of Broadcom rose over 3% in premarket trading.
The company is a key partner in Anthropic's AI infrastructure, with a significant financing agreement in place that includes a $63 billion commitment for AI chips and a potential $42 billion loan to support Anthropic's infrastructure development.
Analysts from Raymond James and Wolfe Research highlighted the reciprocal business relationship between Broadcom and Anthropic as a major growth driver, predicting that Anthropic could become Broadcom's largest customer for processing units by 2027.
Overall, Wall Street analysts are optimistic about Broadcom, with 48 out of 51 analysts recommending a buy or strong buy, despite the stock's nearly 5% decline year-to-date compared to the broader market