Seeking Alpha
27 Oct 2026, 11:49 UTC · 1h ago
Broadcom: Anthropic's IPO Is Derisking The Bull Case
Impact · against what's priced in
The news is largely non-catalytic for AVGO as the market has already priced in the current AI growth trajectory and the financing risks associated with customers like Anthropic. While the author argues for a $483 price target, the market currently declines the very AI revenue scaling and EPS growth that would justify such a valuation.
- AVGO+0.20
Challenges what's priced in
- The price assumes
Anthropic and OpenAI scaling into Broadcom's largest customers, supporting the bull case for a 50-65% price increase.
The market currently refuses to pay for the bull case involving Anthropic; a potential IPO could derisk this by providing the funding flexibility needed to scale these customers.
What AVGO's price assumes · Sep 9
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