Rosenblatt Sets $600 Target, Calling Broadcom Selloff Excessive

Yahoo Finance · 2026-10-28

Rosenblatt Securities reaffirmed its Buy rating and $600 price target on Broadcom on Oct. 27, sitting 75% above the stock's Oct. 26 close of $342.33, following a $63 billion financing agreement linked to Anthropic chips. Broadcom shares had previously dropped 32% from their June 2 peak. Third-quarter AI semiconductor revenue surged 221% year over year to $16.7 billion, with management projecting $115 billion for fiscal 2027 and $230 billion for fiscal 2028. Chief Executive Officer Hock Tan expects Anthropic to be the top custom-chip buyer in 2027 and OpenAI the second largest in 2028. Key upcoming catalysts include Broadcom's December fourth-quarter earnings report and Anthropic's initial public offering.

AI 시장 분석

Rosenblatt Securities maintained its Buy rating and $600 price target on Broadcom (AVGO), citing a $63 billion funding deal related to Anthropic and growing demand for AI semiconductors. Broadcom's Q3 AI semiconductor revenue surged 221% year-over-year to $16.7 billion, proving steep growth. However, the structure where Broadcom partially guarantees the financing of key clients Anthropic and OpenAI is pointed out as a potential risk factor. Investors should closely monitor the upcoming December earnings release and Anthropic's IPO.

상승 영향

AI — Broadcom's Q3 AI semiconductor revenue surged 221% year-over-year to $16.7 billion, proving strong front-end demand.

하락 영향

Semiconductors — Broadcom provided $2.9 billion in lease guarantees, exceeding its cash holdings, for key client Anthropic's $6.3 billion funding round, increasing financial risk if the client becomes insolvent.

DYAX 전담 분석

Broadcom's recent sharp stock decline is evaluated as excessive, highlighting valuation appeal based on revenue forecasts of $115 billion for fiscal 2027 and $23 billion for fiscal 2028. On the other hand, Broadcom's large-scale lease guarantees for customer financing carry structural risks that could directly lead to financial burdens if clients become insolvent.

The bullish scenario is that AI chip demand exceeds expectations, achieving the 2028 EPS target of $30 and reaching the $600 mark, while the bearish scenario involves undergoing further correction due to financial distress of key clients and the realization of guarantee risks. Key metrics to watch are whether guidance is maintained in the December Q4 earnings release and the progress of customer financing.

AI가 생성한 분석으로 투자 자문이 아닙니다.

DYAX Investor Sentiment

Bullish (Long) 59% · Bearish (Short) 41%

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