One Wall Street Analyst Says This Stock Is the Best Way to Invest in Anthropic and OpenAI. He's Right.

What happened: D.A. Davidson analyst Gil Luria named Broadcom (NASDAQ: AVGO) the best way to invest in Anthropic and OpenAI ahead of their expected IPOs, and upgraded the stock to buy. Key numbers: Price target raised from $350 to $400. Anthropic holds $131 billion in cash and has $161 billion in commitments with Broadcom. Why it matters: Luria said Anthropic and OpenAI are poised to become Broadcom's largest ASIC customers in the next few years, and he argued the stock trades as if it has a nearly 0% chance of reaching his projections. Market: -2.5% today ($325.81), -6.1% YTD, 0.3x vol — as of 16:18 UTC

D.A. Davidson analyst Gil Luria named Broadcom (NASDAQ: AVGO) the best way to invest in Anthropic and OpenAI ahead of their expected IPOs, and upgraded the stock to buy.

Luria said Anthropic and OpenAI are poised to become Broadcom's largest ASIC customers in the next few years, and he argued the stock trades as if it has a nearly 0% chance of reaching his projections. Market: -2.5% today ($325.81), -6.1% YTD, 0.3x vol — as of 16:18 UTC