Broadcom lands big deal specialty chips deal. Wall Street sees stock surging
Wall Street is buying the long-term bull case for Broadcom after the semiconductor firm deepened its relationship with Anthropic and signed a deal with Google . Under its latest agreement with Anthropic , Broadcom will supply multiple gigawatts of next-generation tensor processing unit capacity for the Claude maker’s artificial intelligence infrastructure. The semiconductor supplier also said Monday it reached a deal to produce future versions of AI hardware for Google through 2031. These developments had investors and analysts thinking Broadcom will continue gaining ground in AI. Broadcom shares climbed 3% on Tuesday while the broader market struggled. Several analysts reiterated their buy-equivalent ratings on the stock, while calling for big gains ahead. AVGO YTD mountain AVGO year to date “We are significantly more confident of Broadcom achieving much greater than $120B+ of AI revenues in [fiscal year 2027],” JPMorgan’s Harlan Sur wrote. “We view this as a major proof point for the durability and expanding [total addressable market] of AVGO’s XPU ASIC Franchise. … We believe there is more to come.” Sur has an overweight rating on Broadcom. He’s not the only one bullish on the stock. Of the 51 analysts covering Broadcom, 49 have a buy or strong buy on the stock, LSEG data shows. Shares have surged nearly 112% over the past year. Wells Fargo: Overweight rating, $430 price target Analyst Aaron Rakers’ price target points to 36.8% upside. “Our Overweight rating and $430 price target (~21x P/E on our CY27 EPS) reflects our confidence that AVGO’s AI positioning / momentum sustains into CY26, with increasing confidence in potentially meaningful incremental catalysts looking through the year. We also see Broadcom as a key beneficiary from expanding network intensity in AI infrastructure build-outs.” Citi: Buy, $475 Atif Malik’s target implies upside of 51% from Monday’s close. “AVGO previously expected compute demand to approach ~10GW in 2027 and had line of sight to achieve AI revenue of $100 billion in 2027. Given this announcement, we see upside to AVGO’s AI revenue target of $100 billion to +$130 billion assuming our prior Google sales of $65.4 billion in F27.” Deutsche Bank: buy, $430 The bank’s target signals a gain of 36.8%. “We view today’s 8K positively from both a financial and a strategic perspective. Financially, we believe the Google TPU LTA could result in well > $50b in revenue for AVGO over the next 5 years. This amount should be further bolstered by the Anthropic deal (chips only) that we believe may result in revenue of ~$50b in CY27 alone,” analyst Ross Seymore wrote. Bernstein: Outperform, $525 Bernstein’s price target suggests a surge of 67% from Monday’s close. “Recall that AVGO guided to FY27 AI revenues of ~$100B. We believe this number is looking increasingly light. The company had suggested close to 10GW of AI capacity shipping in FY27 (~3 from Anthropic, now more?); $100B would suggest ~10B per GW (which feels low to us; Anthropic alone seems like it could be approaching the $50B mark). We believe upside to numbers consequently feels likely (note that every ~$10B corresponds to roughly $1 per share in EPS) and the stock is looking increasingly attractive here,” wrote analyst Stacy Rasgon. Melius Research: Buy, $575 Ben Reitzes’ price target implies upside of nearly 83% from Monday’s close. “Doing a deal through 2031 seems to imply that Google feels Broadcom can receive ample supply of critical components long-term. Second, Anthropic is crushing it with its ARR now at $30B, up from just $9B in December 2025. With each Gigawatt worth about $15B, Broadcom is now doing 4.5GW of chips over the next ~2 years vs. 4GW previously – and being locked into Anthropic is critical. We now see meaningful upside to our estimate for $110B in AI revenue for AVGO in FY2027 as EPS power should top $20.” Jefferies: Buy, $500 Analyst Blayne Curtis’ price target implies upside of 59%. “This agreement is representative of a broader pattern across the AI landscape, where leading labs and hyperscalers are locking in massive LT supply commitments to secure compute capacity years in advance.”
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