Broadcom shares climbed more than 3% in premarket trading on Tuesday, October 27, 2026, after Anthropic's IPO filing pushed Wall Street analysts to upgrade the chipmaker and predict it will be one of the biggest beneficiaries of the AI company's public debut.
Anthropic said Monday in an S-1 filing that it plans to list on the Nasdaq exchange under the ticker symbol ANT, and analysts moved quickly to identify who profits. Broadcom, the semiconductor firm supplying the chips behind Anthropic's AI infrastructure, topped nearly every list, according to CNBC's reporting.
Why analysts see Broadcom as the Anthropic IPO winner
D.A. Davidson upgraded Broadcom to buy from neutral and raised its price target to $400 from $350, implying nearly 22% upside from Monday's close. The upgrade rests on a simple read of the filing: Anthropic's IPO looks likely to proceed, and a successful debut would unlock the capital the AI company needs to keep buying Broadcom chips.
Our reading of the Anthropic IPO filing leads us to believe the IPO will proceed, Anthropic will raise its capital, and next year OpenAI will raise more capital in its own IPO, allowing Broadcom to meet its expectations for the next couple of years, D.A. Davidson analyst Gil Luria said Tuesday in a note to clients.
At the current 16x multiple on 2027 earnings per share, AVGO is trading as if the chances of that happening are near zero, which creates significant upside if those deals both materialize, Luria said.
The money behind the chips
The financial arrangements between the two companies are unusual in their scale. Broadcom said Monday that Bank of America, Blackstone, Citi and Morgan Stanley have created a special purpose vehicle that will finance $63 billion in Broadcom AI chips for Anthropic. Anthropic also disclosed earlier this month that it will borrow up to $42 billion directly from Broadcom to build out its AI infrastructure.
Raymond James analyst Simon Leopold said he expects Anthropic to deploy another 5 gigawatts of TPU8i capacity in fiscal 2027 and an incremental 10 GW in fiscal 2028, which would make Anthropic Broadcom's largest XPU customer in fiscal 2027. The IPO filing, he wrote, provides compelling support for the magnitude and longevity of this opportunity.
Leopold also flagged Broadcom's potential $42 billion financing commitment, which may be transferred to a financial partner, as a less appreciated financial exposure for the company.
Wolfe Research analyst Chris Caso said the financing that covers Anthropic's 2027 Broadcom purchases is now in place, which makes it highly likely those purchases will proceed as planned. More broadly, he wrote, the fact that these purchases do appear to be financeable despite their large size makes it more certain that bullish 2027 and 2028 forecasts will be met, up and down the supply chain.
A broader rally and bigger questions
Broadcom was not the only stock moving on the news. Chip and chip-related companies led a wider market rally, with the Philadelphia semiconductor index up after a turbulent stretch of trading, as The National reported.
The enthusiasm comes with caveats that matter beyond the trading floor. Anthropic's S-1 listed roughly $807 billion worth of deals for computing power and related AI infrastructure in coming years, a figure that drove investors to bid up chipmakers and neocloud firms, according to the New York Times. That number reflects the extraordinary growth of the AI business model, but it also exposes its extremes: massive spending commitments paired with real uncertainty about demand, as Bloomberg noted.
Robert Pavlik, senior portfolio manager at Dakota Wealth, captured the mood. It's a challenging environment, to say the least, exactly when this IPO will take place, but there's a lot riding on not only the company, but the AI industry, he said, in remarks quoted by The Detroit News.
What this means for the AI economy
For anyone watching the concentration of economic power in the AI sector, the filing tells a clear story. A handful of banks now finance the chip purchases of one AI lab, which borrows tens of billions from its own supplier, in a loop where each party's fortunes depend on the others' projections holding. Anthropic is poised to be the first major US firm focused solely on AI software to reach the public market, and its debut will test whether investors are willing to fund that model at scale.
Wall Street remains largely bullish on Broadcom. Of the 51 analysts covering the stock, 48 have a buy or strong buy rating, according to LSEG data cited by CNBC. Still, shares have fallen nearly 5% year to date, underperforming the broader market, a reminder that analyst enthusiasm and stock performance have diverged before.
William Blair analyst Sebastien Naji summed up the bull case in terms of risk and reward. We see an attractive risk/reward equation for the stock given Broadcom's XPU customer roadmap and likely upside to expectations, he said.
FAQ
What ticker will Anthropic use in its IPO?
Anthropic plans to list on the Nasdaq exchange under the ticker symbol ANT, according to its S-1 filing submitted Monday, October 26, 2026.
How much is Broadcom financing for Anthropic?
Anthropic will borrow up to $42 billion from Broadcom, while a special purpose vehicle backed by Bank of America, Blackstone, Citi and Morgan Stanley will finance $63 billion in Broadcom AI chips for Anthropic.
Did analysts upgrade Broadcom after the Anthropic filing?
Yes. D.A. Davidson upgraded Broadcom to buy from neutral and raised its price target to $400 from $350 on Tuesday, October 27, 2026.