Broadcom's Target Increased: $435 with AI!

Broadcom's Growth Prediction Increased

Mizuho analyst Vijay Rakesh raised the price target for Broadcom to $435, drawing attention to new AI-driven growth factors. Rakesh noted that this growth is attributed to partnerships with Anthropic and OpenAI.

New Customer and Revenue Expectations

According to the firm, Anthropic has become Broadcom's fourth-largest customer. Distributions of the AI rack are expected to generate approximately $10 billion in revenue in the second half of 2026. Rakesh added, “We were on the ground during significant announcements at OCP,” stating, “Anthropic adds another momentum.”

Market Expectations and Progress

The analyst emphasized that OpenAI is Broadcom's fifth customer, involving an agreement worth approximately 10GW. Mizuho stated that Anthropic is an important customer for Broadcom and projected that revenues from AI racks would reach $10 billion in the second half of 2026.

Network Technologies and Innovations

Broadcom also introduced new network technologies to support artificial intelligence infrastructure. Mizuho highlighted that the company's third-generation CPO Tomahawk 6-Davisson engineering has over 70% lower energy requirements and that the new Thor Ultra 800G NIC is equipped with features such as telemetry, load balancing RoCE, and open architecture.

Important Announcements and Market Share

Mizuho defined Broadcom's new Ethernet for Scale-Up Networking (ESUN) system as "the main announcement." This announcement may assist in the prior broadening of the scope by Scope's SUE-T. This indicates that Broadcom has the potential to increase its market share against NVLink/UALink.