Rosenblatt Affirms Buy on Broadcom, $600 Price Target

Rosenblatt analyst Sajal Dogra reiterated a Buy rating and $600 price target on Broadcom Limited (NASDAQ: AVGO).

“Broadcom announced a $63B financing transaction to support Anthropic’s CY27 compute deployments.

The financing covers four sites across four U.S. states and follows the $35B CY26 transaction, supporting Anthropic’s planned 1GW/5GW/10GW ramp across CY26/CY27/CY28.

It funds only part of Anthropic’s CY27 requirements, leaving additional financing ahead. We view this as a positive execution milestone for Anthropic’s committed ramp.

With financing increasingly constraining AI deployment, Broadcom is using its balance sheet to support chip sales while earning ~200bps on the supported balance.

Broadcom sells chips to an SPV that leases capacity to Anthropic, recognizing revenue upon delivery and acceptance. The fee is separate from chip ASPs.

The trade-off is meaningful contingent exposure, which could grow even as the required backstop percentage declines.

The RVS backstop functions economically as a bridge until Anthropic can finance compute needs independently.

Hock expects improving Anthropic creditworthiness to expand the capital available without Broadcom’s support, potentially reducing or eliminating backstops on future transactions.

We maintain our Buy rating and $600 price target, based on 18x our FY28 Non-GAAP EPS estimate.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.