Broadcom Stock Target (AVGO) Raised on Anthropic AI Tailwinds

Broadcom Inc. (NASDAQ: AVGO) has received another upward revision to its price target, this time driven by the potential of its collaboration with Anthropic in the artificial intelligence sector, further solidifying its position in the AI semiconductor market. 

Mizuho analyst Vijay Rakesh increased the firm's price target on Broadcom to $435 from $430, maintaining an Outperform rating. This adjustment comes as Mizuho identifies Anthropic as Broadcom's fourth major customer, anticipating a significant revenue stream from “AI Racks” in the second half of 2026, potentially reaching $10 billion.

This development is viewed as adding further tailwinds for Broadcom, reinforcing its growth trajectory in the AI domain. The stock has had a strong year, with year-to-date gains of 50.55%.

This latest price target increase follows a series of positive revisions reflecting Broadcom's escalating involvement in AI. In October 2025, Mizuho raised the price target to $430 from $410 following the announcement of Broadcom's partnership with OpenAI to develop a custom Application-Specific Integrated Circuit (ASIC) named “Titan.” This deal, projected to generate between $150 billion and $200 billion over several years, led Mizuho to conservatively estimate AI revenue for fiscal years 2026, 2027, and 2028 at $40.4 billion, $64.5 billion, and $78 billion, respectively.

Price Targets

While Broadcom's advancements in AI and strategic partnerships have strengthened its market position, Mizuho's analysis suggests potential negative implications for competitors like Marvell Technology (NASDAQ: MRVL).

The firm's research notes indicate that Broadcom's expanding AI collaborations, such as the ones with OpenAI and now Anthropic, could intensify competition in the AI semiconductor space, potentially impacting Marvell's market share and growth prospects.