Broadcom Upgraded By DA Davidson After Anthropic IPO Filing — Analyst Says AI Cycle 'Isn't Over Quite Yet'

What happened

D.A. Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350 after Anthropic filed for an IPO. The filing disclosed a five-year Broadcom equipment lease with about $125.2 billion in payments, excluding interest.

Confirmed

Global impact / market context

If Anthropic and possibly OpenAI raise money through IPOs, that funding could support Broadcom's AI-related sales and expectations. The analyst argues Broadcom shares barely reflect these IPOs happening, so completion could lift investor expectations and the stock.

Analyst inference

Anthropic's filing shows how large AI infrastructure commitments have become, with a five-year lease of about $125.2 billion owed to Broadcom. That links Broadcom's future revenue to customers' ability to raise cash and keep spending on AI equipment.

Analyst inference

What to watch

1. Anthropic filed a Form S-1 with the SEC for a Nasdaq listing and disclosed a five-year Broadcom lease with about $125.2 billion in payments, excluding interest. Confirmed
2. Watch whether Anthropic completes its IPO and raises capital, and whether an OpenAI IPO follows next year, because the analyst says that funding could help Broadcom meet expectations. Proposed
3. Track Broadcom's AI equipment orders and lease-related revenue, since a slowdown in customer fundraising could reduce capital spending and pressure the expectations behind the upgraded rating and $400 target. Analyst inference

Evidence

• stocktwits.com