Macquarie upgrades Broadcom, sees Anthropic spending offsetting Google chip risks

  • Macquarie upgraded Broadcom to Outperform and raised its price target to $490 from $437.
  • Anthropic could purchase more than $40 billion from Broadcom in fiscal 2028, according to Lai.
  • Broadcom reported $29.6 billion of fiscal-third-quarter revenue, while shares fell nearly 4% after results.

Macquarie Equity Research upgraded Broadcom to Outperform from Neutral and raised its price target to $490 from $437, implying roughly 33% upside from Wednesday’s close and about 35% in total shareholder return. Analyst Arthur Lai said concerns that Google could reduce its reliance on Broadcom for custom AI chips were already reflected in the stock after a roughly 23% three-month decline and a 24% drop from its 2026 high. He identified Anthropic’s computing buildout as a major growth engine, forecasting more than $40 billion of Broadcom purchases in fiscal 2028. Broadcom reported fiscal-third-quarter revenue of $29.6 billion, up 33% quarter on quarter, with gross margin of 75.0% and net profit 4% above Macquarie’s estimate, though shares fell nearly 4% in extended trading. Lai said growth was becoming more diversified across six XPU customers, with OpenAI expected to become the second-largest by fiscal 2028 and Meta Platforms scheduled to ship three generations of its MTIA chip. Macquarie raised its fiscal 2026, 2027 and 2028 earnings estimates by 2%, 0% and 12%, respectively. LSEG data showed 47 of 51 firms covering Broadcom rated the shares Buy or Strong Buy.

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