Analyst sees Broadcom as an indirect play on Anthropic and OpenAI

AI · First reported 4 Nov, 15:10 · Updated 15:16

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D.A. Davidson analyst Gil Luria argues that Broadcom could benefit from Anthropic and OpenAI’s planned spending on custom AI chips. He upgraded Broadcom to buy and raised his 12-month price target to $400, while the articles also report the companies’ stated or expected chip deployments and Broadcom revenue targets.

Luria says Broadcom may offer an indirect way to invest in Anthropic and OpenAI because both are expected to become major customers for its custom chips.
The articles report Broadcom’s forecast that AI revenue will reach $115 billion in fiscal 2027 and $230 billion in fiscal 2028.
Luria upgraded Broadcom to buy and increased his 12-month price target from $350 to $400.

Summary written by Lux AI from 2 articles

Key facts

Anthropic commitments with Broadcom: $161 billion
Broadcom AI revenue forecast: $115 billion in fiscal 2027 and $230 billion in fiscal 2028
Luria’s revised price target: $400 over 12 months, up from $350
Anthropic planned chip deployment: 5 gigawatts in fiscal 2027 and 10 gigawatts in fiscal 2028
OpenAI planned chip deployment: 5 gigawatts in fiscal 2028