What happened
Analysts speculate that Anthropic, an AI startup known for its Claude large language models, could be Broadcomâs unnamed $10 billion customer. This follows Broadcomâs recent announcement of a major deal with OpenAI, but the company confirmed OpenAI is not the mystery customer referenced in its earnings call.
Why it matters
- Landing Anthropic as a customer would be a significant win for Broadcom, given Anthropicâs rapid growth in the AI sector.
- Broadcomâs stock has already risen sharply this year, and adding a high-profile AI client could further boost investor confidence.
- The potential deal highlights the increasing importance of semiconductor companies in powering advanced AI technologies.
Key facts
- 1. Broadcomâs stock is up 145% from its year-to-date low in April 2023.
- 2. Anthropicâs revenue is expected to reach $7 billion this month and exceed $20 billion by 2026.
- 3. A Mizuho analyst maintains an âOutperformâ rating on Broadcom, with a 12-month price target of $435, suggesting 30% potential upside.
