TLDR
- Mizuho Securities analyst Vijay Rakesh raised Broadcom’s price target to $435 and believes Anthropic is the company’s fourth major AI customer
- Anthropic could generate $10 billion in revenue for Broadcom from AI server racks by the second half of 2026
- Anthropic raised $13 billion in September at a $183 billion valuation with over $5 billion in annualized revenue
- UBS analyst Timothy Arcuri maintained a Buy rating on Broadcom with a $415 price target
- Broadcom stock is up 48% this year, outperforming the semiconductor sector which rose 35%
Broadcom received positive analyst attention this week as Mizuho Securities raised its price target for the chipmaker. The new target of $435 represents an increase from the previous $430 target.
Analyst Vijay Rakesh maintains an Outperform rating on Broadcom shares. His research suggests Anthropic has become the company’s fourth major customer for AI infrastructure.
Customer Identity Revealed
Rakesh believes Anthropic will generate $10 billion in revenue for Broadcom through AI server rack purchases. This deployment is expected to ramp up during the second half of 2026.
Last month, Broadcom announced a $10 billion order from an unnamed customer. The company did not disclose the buyer’s identity at that time.
Neither Anthropic nor Broadcom responded to requests for comment about their potential partnership. The identification comes from Rakesh’s channel checks and industry research.
Anthropic raised $13 billion in new funding during September. The round valued the AI startup at $183 billion.
The company reported an annualized revenue run rate exceeding $5 billion. This represents growth from $1 billion at the start of the year.
Anthropic serves more than 300,000 business customers. The company develops advanced AI models that compete with other major players in the field.
Stock Performance and Analyst Coverage
Broadcom shares fell 2% to $342.17 in early trading Tuesday. The stock has climbed 48% year to date.
The iShares Semiconductor ETF rose 35% during the same period. Broadcom’s gains outpaced the broader semiconductor sector.
UBS analyst Timothy Arcuri issued a Buy rating on Broadcom. His price target sits at $415 per share.
The analyst consensus on Broadcom stands at Strong Buy. The average price target across analysts is $392.46, representing a 12.35% upside from current levels.
Broadcom’s stock closed at $349.33 last Friday. The shares have traded between $138.10 and $374.23 over the past year.
The company specializes in custom AI chip design. Broadcom helps technology companies create application-specific integrated circuits for artificial intelligence applications.
CEO Hock Tan sold 100,000 shares last month for $33.9 million. Corporate insider sentiment on the stock is currently negative based on recent selling activity.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
