Key Highlights
- AVGO shares advanced 4.2% during Thursday morning’s session, establishing a fresh all-time peak at $448.58.
- Susquehanna elevated its price objective to $490, while Aletheia Capital increased its target to $525.
- Investment giants Apollo and Blackstone are assembling a $36 billion financing package for Anthropic’s AI infrastructure expansion, with Broadcom serving as the primary credit backstop.
- The semiconductor leader unveiled a strategic chip collaboration with FuriosaAI, integrating networking capabilities with advanced Tensor Contraction Processor design.
- Chief Executive Hock Tan projected AI chip revenues surpassing $100 billion by 2027, backed by production capacity locked in through 2028.
Broadcom (AVGO) shares experienced a robust 4.2% rally during Thursday’s morning session on May 29, establishing a record intraday peak of $448.58. The upward momentum stemmed from multiple Wall Street firms revising their outlooks higher while a substantial AI financing arrangement spotlighted the company’s expanding role in artificial intelligence infrastructure.
Susquehanna’s Christopher Rolland elevated his AVGO price objective from $450 to $490 while maintaining his Positive stance. Rolland expressed confidence in “Broadcom’s application-specific integrated circuit operations and anticipates sustained strength across their networking product lineup.”
Aletheia Capital analyst Stefan Chang adopted an even more bullish posture, pushing his target from $500 to $525. Chang emphasized that “immediate quarterly figures matter less than management’s TPU commentary,” observing that Google has apparently restructured its TPU inferencing roadmap around the TPUv8i platform for the 2027-2028 timeframe.
UBS recently adjusted its price target upward to $490 as well, referencing a modified Anthropic order structure expected to yield superior profit margins. Meanwhile, Evercore reaffirmed its Outperform designation, highlighting robust demand within AI networking segments.
The timing carries added significance. With Broadcom scheduled to unveil fiscal second-quarter results on June 3, these bullish revisions arrive at a particularly influential moment.
Massive $36 Billion Anthropic Financing Arrangement Elevates Broadcom’s Profile
Apollo and Blackstone are presently recruiting additional capital partners for a $36 billion debt financing structure supporting Anthropic’s AI infrastructure buildout. Broadcom has assumed the backstop position for payment obligations on the arrangement’s largest segment.
This represents a substantial commitment. Serving as the primary credit guarantor on the dominant portion of such a massive financing package reflects institutional confidence that extends far beyond conventional chip vendor relationships.
Simultaneously, Broadcom revealed a fresh alliance with FuriosaAI. This partnership will merge FuriosaAI’s Tensor Contraction Processor framework with Broadcom’s networking expertise to develop multi-die chiplet architectures optimized for AI inference applications within data center environments.
This agreement expands a client roster that already encompasses Google, Meta, ByteDance, and Anthropic.
CEO’s Ambitious $100 Billion AI Projection Sustains Investor Enthusiasm
Jim Cramer discussed Broadcom during his Mad Money program, characterizing it as “a sleeper pick” while lauding CEO Hock Tan as “a strategic operator who continuously attracts new customers.” Cramer mentioned the Charitable Trust has maintained its AVGO position over time, despite reducing exposure modestly on April 24.
Hock Tan’s remarks from the Q1 earnings conference continue resonating with market participants. During that discussion, he revealed having “visibility to generate AI revenue from semiconductors alone exceeding $100 billion in 2027,” supported by manufacturing capacity commitments extending through 2028.
This projection repeatedly surfaces in analyst research, understandably capturing attention.
Broadcom delivered revenue expansion of 25% across the trailing twelve-month period. The broader equity market provided supportive conditions Thursday, with the S&P 500 advancing 0.4%, the Dow gaining 0.4%, and the Nasdaq climbing 0.6%, driven by technology sector strength.
As the June 3 earnings announcement approaches, market participants will scrutinize any updates regarding AI customer engagements and advancement toward that ambitious 2027 revenue milestone.
