Quick Overview
- AVGO shares surged 4.2% during morning trading hours, establishing a fresh all-time peak at $448.58.
- Susquehanna analysts elevated their price objective to $490, while Aletheia Capital pushed theirs to $525.
- Private equity firms Apollo and Blackstone are pursuing funding for a massive $36 billion financing arrangement linked to Anthropic’s AI infrastructure expansion, with Broadcom serving as the primary credit backstop.
- The semiconductor giant unveiled a strategic chip collaboration with FuriosaAI, merging networking capabilities with advanced Tensor Contraction Processor technology.
- Chief Executive Hock Tan has projected AI semiconductor revenue surpassing $100 billion by 2027, with manufacturing capacity already locked in through 2028.
Broadcom (AVGO) shares experienced a robust 4.2% gain during Thursday morning’s trading session on May 29, establishing a fresh record peak of $448.58. The rally was fueled by a combination of favorable analyst revisions and a significant AI financing arrangement prominently featuring the company.
Christopher Rolland from Susquehanna elevated his price objective on AVGO shares to $490, up from the previous $450 target, while maintaining his Positive outlook. Rolland expressed continued confidence in “Broadcom’s ASIC operations and anticipates sustained strength from their networking product lineup.”
Stefan Chang at Aletheia Capital pushed even higher, increasing his target to $525 from $500. Chang emphasized that “short-term financial results matter less than management’s TPU commentary,” observing that Google seems to have adjusted its inferencing TPU roadmap toward TPUv8i deployment for 2027 and 2028.
UBS recently increased its price objective to $490, pointing to a revised Anthropic purchase order that should deliver improved profit margins. Evercore kept its Outperform stance, highlighting robust demand across AI networking solutions.
The timing is particularly significant. With Broadcom scheduled to unveil fiscal second-quarter results on June 3, these analyst endorsements carry additional market influence.
Massive $36 Billion Anthropic Financing Positions Broadcom as Key Player
Apollo and Blackstone are actively pursuing additional capital partners for a substantial $36 billion debt financing tied to Anthropic’s AI infrastructure buildout. Broadcom has committed to backstopping the credit on the largest segment of this arrangement.
This represents a substantial commitment. Serving as the principal credit guarantor on the largest component of a $36 billion financing package demonstrates a degree of institutional confidence that extends far beyond conventional vendor relationships.
Additionally, Broadcom revealed a fresh strategic alliance with FuriosaAI. This partnership will integrate FuriosaAI’s Tensor Contraction Processor design with Broadcom’s networking solutions to develop a multi-die chiplet platform targeted at AI inference applications in hyperscale data centers.
This partnership expands a client roster that already features Google, Meta, ByteDance, and Anthropic.
CEO’s Ambitious $100 Billion AI Forecast Energizes Investor Confidence
Jim Cramer discussed Broadcom during 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 throughout market cycles, though it reduced exposure slightly on April 24.
Hock Tan’s guidance from the Q1 earnings call remains influential in shaping expectations. During that discussion, he revealed having “line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027,” with production capacity already locked in through 2028.
This projection appears repeatedly in Wall Street research, and its significance is clear.
Broadcom delivered revenue expansion of 25% across the trailing twelve months. The broader equity market provided additional support Thursday, with the S&P 500 advancing 0.4%, the Dow gaining 0.4%, and the Nasdaq climbing 0.6%, driven by technology strength.
With the June 3 earnings release approaching, market participants will scrutinize any updates regarding AI customer commitments and advancement toward that ambitious 2027 revenue objective.
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