TLDR
- Broadcom stock rose 4.2% in morning trading, hitting a new all-time high of $448.58.
- Susquehanna raised its price target to $490; Aletheia Capital raised theirs to $525.
- Apollo and Blackstone are seeking investors for a $36 billion debt deal tied to Anthropic’s AI infrastructure, with Broadcom backstopping the largest portion.
- Broadcom also announced a new chip partnership with FuriosaAI combining their networking technology with FuriosaAI’s Tensor Contraction Processor architecture.
- CEO Hock Tan has guided for AI chip revenue exceeding $100 billion in 2027, with capacity secured through 2028.
Broadcom (AVGO) stock climbed 4.2% in morning trading on Thursday, May 29, reaching a new all-time high of $448.58. The move came on the back of multiple analyst upgrades and a major AI financing deal bearing Broadcom’s name.
Susquehanna analyst Christopher Rolland raised his price target on AVGO to $490 from $450, keeping a Positive rating. Rolland said he remains “optimistic on Broadcom’s ASIC business and sees continued momentum from their networking portfolio.”
Aletheia Capital’s Stefan Chang went further, lifting his target to $525 from $500. Chang said “near-term numbers are less important than the company’s comments on TPU,” noting that Google appears to have reshuffled its inferencing TPU plan toward TPUv8i for 2027 and 2028.
UBS also raised its price target to $490 recently, citing a revised Anthropic order expected to deliver higher margins. Evercore maintained an Outperform rating, pointing to strong demand in AI networking.
The timing matters. Broadcom is set to report fiscal second-quarter earnings on June 3, so the upgrades land with extra weight right now.
$36 Billion Anthropic Deal Puts Broadcom Center Stage
Apollo and Blackstone are currently seeking additional investors for a $36 billion debt deal connected to Anthropic’s AI infrastructure expansion. Broadcom is backstopping payments on the largest portion of that arrangement.
That’s not a small role. Being the credit backstop on the biggest slice of a $36 billion deal signals a level of institutional trust that goes well beyond a typical chip supplier relationship.
On top of that, Broadcom announced a new partnership with FuriosaAI. The collaboration will combine FuriosaAI’s Tensor Contraction Processor architecture with Broadcom’s networking technology to build a multi-die chiplet system aimed at AI inference workloads in data centers.
The deal adds another name to a customer list that already includes Google, Meta, ByteDance, and Anthropic.
CEO’s $100 Billion AI Target Keeps Bulls On Side
Jim Cramer addressed Broadcom on Mad Money, calling it “a sleeper” and praising CEO Hock Tan as “a shrewd businessman who’s constantly getting new clients.” Cramer noted the Charitable Trust has held AVGO through thick and thin, though it did trim some of the position on April 24.
Hock Tan’s comments from Q1 earnings continue to set the tone. On that call, he disclosed “line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027,” with capacity already secured through 2028.
That number keeps coming up in analyst notes, and it’s easy to see why.
Broadcom posted revenue growth of 25% over the last twelve months. The broader market gave it a tailwind Thursday, with the S&P 500 up 0.4%, the Dow up 0.4%, and the Nasdaq up 0.6%, led by tech.
With earnings on June 3, investors will be watching closely for any update on AI customer commitments and progress toward that 2027 target.
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