Broadcom’s $63B Anthropic Deal Could Be The One That Finally Gets it Into Gear
A $63 billion financing deal just handed Broadcom a funded customer for its most ambitious revenue forecast yet, but Wall Street is still waiting to see if the chipmaker can actually deliver before it prices any of that in.
Broadcom (NASDAQ:AVGO | AVGO Price Prediction) trades at $345. A new $63 billion financing structure that pays for Anthropic’s Broadcom chips gives the stock a concrete catalyst after a year of trailing the market.
Broadcom designs custom AI accelerators (XPUs), Ethernet networking chips and VMware-based infrastructure software. Semiconductor Solutions produced 70% of revenue last quarter, and AI semiconductor revenue reached $16.70 billion, up 221% year over year.
The shares have fallen behind that growth. The stock sat at $495 around the fiscal second-quarter report and has since slid back to roughly where it started the year. Four Wall Street banks and asset managers then announced a special-purpose financing vehicle to fund Anthropic’s lease of Broadcom XPUs (per deal coverage).
Anthropic Turns a $115 Billion Forecast Into Funded Demand
Management expects fiscal 2027 AI semiconductor revenue to roughly double to $115 billion, then hit $230 billion in fiscal 2028, with EPS above $30. On the last earnings call, Hock Tan said “Anthropic is on track to become our largest XPU customer in 2027,” and Broadcom expects Anthropic to use 5 gigawatts next year (all of that capacity still has to be powered and cooled by somebody, and we rounded up seven suppliers doing exactly that in a free AI infrastructure report). The new financing answers the biggest doubt: whether a fast-growing lab can pay for that capacity.
Valuation supports the optimistic argument. Broadcom trades at 18x forward earnings against 45x trailing, with a PEG ratio of 0.339. Morningstar (NASDAQ:MORN) said the Anthropic deal lines up with its bullish forecast (Morningstar).
Six Customers and Open-Ended Guarantees Raise the Stakes
The entire forecast depends on six XPU customers. Two of them, Anthropic and OpenAI, needed financing vehicles to buy chips. The CFO said Broadcom “may provide modest residual value guarantees,” and management named no cap on future guarantee exposure. Gross margin is also heading toward roughly 73% as the mix shifts toward XPUs and memory.
Timing is another risk. Revenue lands only once land, power and data-center buildings are ready. Total liabilities stand at $88.458 billion, and a beta of 1.476 means any slip in the ramp would hit the shares hard.
Next Year’s Guidance Could Settle the Debate
Patient investors have a case too. The stock trades below its 50-day average of $354.48 and its 200-day average of $367.79, so the market still wants proof. The next earnings report should show whether Broadcom hit its $21.70B AI guide and how strongly it backs the fiscal 2027 outlook.
Wall Street Sees Over 50% Upside While Shares Trail the S&P 500
At $345, Broadcom sits well below the consensus target of $530.14, which implies about 53.7% upside. Price targets carry uncertainty, and 50 analysts cover the stock, and their ratings look like this:
- Strong Buy: 7
- Buy: 40
- Hold: 3
- Sell: 0
Broadcom is up 0.23% year to date while the S&P 500 has gained 12.84%. Over the past year, the stock is down 9.96% against an 11.94% gain for the index.
Broadcom’s Funded Demand Meets a Discounted Price
At $345, Broadcom’s upside depends on execution and valuation.
In the coming six months, the path runs through Broadcom delivering on its Q4 guide and then confirming fiscal 2027 guidance near $115 billion. Tan said “Our demand actually exceeds this outlook,” and Broadcom has nine straight EPS beats behind it.
At this price, investors pay a forward multiple of 18x for AI revenue that is growing in triple digits. The stock sits far closer to its 52-week low of $288.95 than its $493.28 high, which leans risk/reward toward the upside.
The outlook falls apart if fiscal 2027 guidance comes in short, if Anthropic deployments slip, or if Broadcom takes on large residual value guarantees. Watch all three closely.
Anthropic now has the funding to become Broadcom’s biggest customer, and the market has yet to price that in.
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Alex Sirois is a financial writer with experience spanning both retail and institutional investing. He has written for InvestorPlace and held roles at BNY Mellon and Bernstein, giving him a perspective that bridges Main Street portfolios and Wall Street analysis.
Alex holds an MBA from George Washington University and has built his career across multiple industries, including e-commerce, education, and translation — a breadth of experience that informs how he breaks down complex financial topics for everyday investors. His writing is conversational, actionable, and grounded in long-term, buy-and-hold investing principles.
At 247 Wall St., Alex focuses on delivering analysis that is both accessible and useful, with a clear emphasis on helping readers make more informed decisions with their money.
