Anthropic Is Now a Top Broadcom Customer According to Analysts. Should You Buy AVGO Stock?

Core Insights - Broadcom's potential $10 billion customer is speculated to be Anthropic, an AI startup known for its Claude family of large language models, as per Mizuho analyst [1] - Broadcom's stock has seen a significant increase of 145% from its year-to-date low in April [2] Company Performance - Broadcom has established a strong presence in the AI sector with notable customers like Google and Meta Platforms, and securing Anthropic would further enhance its market position [3] - Mizuho's analyst maintains an "Outperform" rating for Broadcom, projecting the stock could reach $435 in the next 12 months, indicating a potential upside of 30% [4] Revenue Projections - Following the announcement of a deal with OpenAI and the expectation of Anthropic as a major customer, revenue estimates for Broadcom's AI segment have been raised [5] - By 2026, Broadcom's AI revenue is expected to reach approximately $41 billion, with projections of doubling to $82.7 billion by fiscal 2028 [5] Market Outlook - The semiconductor industry is anticipated to grow significantly, with Broadcom expected to maintain its competitive edge in a market projected to exceed a trillion dollars in the next decade [6] - The consensus rating for Broadcom shares is currently "Strong Buy," with a mean target price of $398, suggesting a potential upside of about 17% [8]