Broadcom shares climbed as much as 5% on Tuesday, October 27, 2026. The move came a day after Anthropic filed to go public, and after one analyst decided the filing changed his view of the chipmaker.
The S-1 named Broadcom as Anthropic’s largest infrastructure partner, with agreements valued at $161.2 billion. Few things move a stock like a customer publishing its spending plans in a regulatory filing.
The upgrade and the filing behind it
DA Davidson analyst Gil Luria raised his rating on Broadcom (AVGO) from Neutral to Buy. He also lifted his price target from $350 to $400.
The catalyst was Anthropic’s S-1, filed on October 26, 2026. Inside that document, Anthropic laid out a $161.2 billion relationship with Broadcom. It also disclosed $131 billion in cash and equivalents, plus gross margins of approximately 50%.
Luria pointed to those figures as evidence that spending on AI infrastructure looks set to continue. A customer with that much cash on hand is a customer that can keep paying its suppliers.
A $63 billion financing structure
The filing also detailed a $63 billion financing arrangement built to support Anthropic’s equipment leases from Broadcom. Bank of America and Blackstone are among the firms involved.
Timing is the other key detail. Deliveries of the partnered products and services are expected to begin in 2027. So the headline number describes future business, not revenue already booked.
Why Anthropic’s IPO matters to Broadcom
Anthropic’s move toward public markets has drawn intense interest, and Broadcom is one of the clearest listed ways to express a view on it. Until the AI company’s shares actually trade, investors looking for exposure have to go through its suppliers.
The S-1 effectively served as third-party confirmation of Broadcom’s role in one of the largest AI buildouts on record. It also gave analysts something they rarely get: hard numbers from the customer side.
What this means for investors
The bull case is fairly direct. A deep-pocketed customer has committed to a massive multi-year relationship, backed by financing from established institutions. Luria’s upgrade signals that, in his view, Broadcom’s valuation didn’t yet reflect that.
The risks deserve equal billing. Deliveries are expected to start in 2027, which leaves plenty of room for schedules to slip or plans to change. Expected revenue and recognized revenue are not the same line item.
Then there’s the IPO itself. Filing an S-1 starts the process; it does not guarantee a listing on any particular timeline or at any particular valuation.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.