Broadcom shares jumped as much as 5% on Tuesday after DA Davidson upgraded the stock to Buy. The analyst cited Anthropic's IPO filing, which names Broadcom as its largest infrastructure partner.
Broadcom shares climbed as much as 5% on Tuesday, October 27, 2026, a day after Anthropic filed to go public. As of 11:20 a.m. ET, the stock was still up 3.5%.
An upgrade built on the S-1
DA Davidson analyst Gil Luria raised his rating on Broadcom from Neutral to Buy. He also lifted his price target from $350 to $400.
The catalyst was Anthropic's S-1, filed on October 26, 2026. The document laid out a $161.2 billion relationship with Broadcom, and disclosed $131 billion in cash and equivalents plus gross margins of approximately 50%. Luria pointed to those figures as evidence that spending on AI infrastructure looks set to continue.
Fool's Danny Vena adds that the new target represents potential upside of 22% compared with Monday's close.
Financing and lease details
The filing also detailed a $63 billion financing arrangement built to support Anthropic's equipment leases from Broadcom. Bank of America and Blackstone are among the firms involved.
Separately, a report from The Wall Street Journal suggests Broadcom CEO Hock Tan lobbied banks and private equity firms to help Anthropic secure that financing. According to Fool, Luria noted that Broadcom is both a supplier and lessor to Anthropic, with a non-cancelable five-year lease.
Risks remain
Deliveries of the partnered products and services are expected to begin in 2027. The headline number therefore describes future business, not revenue already booked.
The IPO itself is also unsettled. Filing an S-1 starts the process, but it does not guarantee a listing on any particular timeline or at any particular valuation.
Sources: Crypto Briefing, Fool
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