Broadcom: DA Davidson upgrades AVGO, says Anthropic S-1 shows AI cycle isn’t over

What happened: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350, citing Anthropic's IPO filing as a sign the AI cycle is not over. Key numbers: Price target $400 from $350. Anthropic S-1 discloses $131 billion in cash and equivalents and a $161 billion relationship with Broadcom. Anthropic gross margins roughly 50%. Why it matters: Analyst Gil Luria expects the Anthropic IPO to proceed and pave the way for an OpenAI IPO next year, and argues AVGO trades as if those deals have near zero chance, creating upside if both materialize. Market: +2.3% today ($329.17), -5.1% YTD, 0.8x vol — as of 12:00 UTC

DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350, citing Anthropic's IPO filing as a sign the AI cycle is not over.

Analyst Gil Luria expects the Anthropic IPO to proceed and pave the way for an OpenAI IPO next year, and argues AVGO trades as if those deals have near zero chance, creating upside if both materialize. Market: +2.3% today ($329.17), -5.1% YTD, 0.8x vol — as of 12:00 UTC