Key Highlights
- Broadcom shares surged 4.2% during Thursday’s morning session, establishing a fresh record of $448.58.
- Wall Street analysts elevated price projections, with Susquehanna targeting $490 and Aletheia Capital aiming for $525.
- A massive $36 billion financing package linked to Anthropic’s AI infrastructure expansion features Broadcom as the primary payment backstop.
- A strategic collaboration with FuriosaAI was unveiled, merging advanced networking capabilities with specialized tensor processing architecture.
- Leadership projects AI chip revenue surpassing $100 billion by 2027, supported by secured manufacturing capacity extending to 2028.
Shares of Broadcom (AVGO) advanced 4.2% during Thursday morning trading on May 29, establishing a fresh all-time peak at $448.58. The remarkable performance followed a combination of favorable analyst commentary and a substantial artificial intelligence financing arrangement involving the semiconductor giant.
Christopher Rolland of Susquehanna elevated his valuation forecast for AVGO from $450 to $490 while maintaining a Positive stance. Rolland expressed confidence in “Broadcom’s ASIC business trajectory and anticipates sustained strength across their networking product lineup.”
Aletheia Capital analyst Stefan Chang demonstrated even greater optimism, increasing his target from $500 to $525. Chang emphasized that “quarterly figures matter less than management’s TPU commentary,” observing that Google has apparently restructured its inference TPU roadmap to prioritize TPUv8i deployment during 2027 and 2028.
UBS recently adjusted its price objective to $490, referencing a modified Anthropic purchase order anticipated to yield improved profit margins. Evercore preserved its Outperform recommendation, highlighting robust appetite for AI networking solutions.
The strategic timing is noteworthy. With Broadcom scheduled to unveil fiscal second-quarter results on June 3, these analyst revisions carry heightened significance for investors.
Broadcom Takes Central Position in $36 Billion Anthropic Financing
Apollo and Blackstone are actively pursuing additional participants for a $36 billion debt arrangement supporting Anthropic’s AI infrastructure buildout. Broadcom serves as the payment guarantor for the largest component of this financing structure.
This represents a significant commitment. Providing credit support for the dominant portion of a $36 billion transaction demonstrates a degree of institutional confidence that transcends conventional chip vendor relationships.
Additionally, Broadcom revealed a strategic alliance with FuriosaAI. This partnership integrates FuriosaAI’s Tensor Contraction Processor design with Broadcom’s networking expertise to develop multi-die chiplet platforms optimized for AI inference applications within data center environments.
This collaboration expands a client roster that encompasses Google, Meta, ByteDance, and Anthropic.
Leadership’s $100 Billion AI Revenue Projection Sustains Investor Enthusiasm
Jim Cramer discussed Broadcom on Mad Money, characterizing it as “a sleeper” and commending CEO Hock Tan as “a shrewd businessman who’s constantly getting new clients.” Cramer mentioned the Charitable Trust has maintained its AVGO position despite market fluctuations, although it reduced holdings modestly on April 24.
Hock Tan’s guidance from the first quarter conference call continues influencing market expectations. During that discussion, he revealed “visibility to reach AI revenue from chips, specifically chips, exceeding $100 billion in 2027,” with production capacity already locked through 2028.
This projection consistently appears in analyst research, and the reasoning is apparent.
Broadcom delivered revenue expansion of 25% across the trailing twelve months. Thursday’s broader market environment provided support, with the S&P 500 advancing 0.4%, the Dow gaining 0.4%, and the Nasdaq climbing 0.6%, powered by technology stocks.
As the June 3 earnings release approaches, market participants will scrutinize any updates regarding AI customer engagements and advancement toward the 2027 revenue objective.
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