Broadcom Stock Forecast: AVGO Holds $319 as $63 Billion Anthropic Deal Revives the AI Funding Debate

TradingKey - Broadcom (NASDAQ: AVGO) rose 2.33% to $329.17 on Monday, October 26, after reaching an intraday high of $332.12. After the close, banks and Blackstone announced $63 billion of financing for Anthropic to buy Broadcom's AI chips, and after-hours trade reached $333.50. That gain faded, and quotes near $328.81 prevailed overnight.

The stock trades approximately 34% below its 52-week high of $495.00, even though its AI revenue is growing. Investors no longer doubt the demand for Broadcom's AI chips. They are interested in how much Broadcom is assisting in funding.

$63 Billion Anthropic Financing

Bank of America, Citigroup, and Morgan Stanley are arranging the $43.5 billion senior debt portion, and Blackstone is providing the junior debt portion of the financing. A special purpose vehicle (SPV), formed for this financing, will purchase Broadcom's AI chips and networking equipment and lease the equipment to Anthropic, with deliveries starting in 2027.

Broadcom is the seller. However, Broadcom also offers lenders a guarantee, to make up a portion of the shortfall if the equipment is worth less than expected at the end of the lease, and Moody’s said risk could rise if a number of similar deals are arranged in a short time frame.

Financing Risk Weighed All Month

On October 1, Reuters mentioned Anthropic's IPO filing showed Broadcom agreed to lend Anthropic up to $42 billion debt that could be converted to Anthropic shares. Anthropic is anticipated to be Broadcom’s largest custom chip customer in 2027. However, the filing showed Anthropic posted an operating loss of about $8 billion in 2025.

On October 8, Broadcom fell 4.4% after reports that Broadcom was arranging approximately $50 billion of financing for OpenAI and that OpenAI's annualized revenue was about $50 billion, which is below the $68 billion that was widely reported a month prior. Later, CEO Hock Tan commented that Broadcom is overcoming wafer and memory shortages, but funding will be the hardest limit as AI development continues.

Q3 Estimates Beat

In fiscal Q3, revenue rose 86% to $29.6 billion, topping a forecast of $29.36 billion. AI semiconductor revenue jumped 221% to $16.7 billion, and adjusted EPS of $3.32 topped $3.24. Free cash flow reached $13.7 billion, or 46% of revenue.

Guidance and the Long-Term AI Path

For fiscal Q4, Broadcom forecast revenue of about $34.8 billion, slightly below a consensus of $35.03 billion, with AI semiconductor revenue of about $21.7 billion, up 236% year-over-year. Results are expected in early December.

The focus is on Broadcom's multi-year path. For fiscal years 2027 and 2028, Broadcom now expects AI semiconductor revenue of about $115 billion and $230 billion, respectively, up from prior guidance of "more than $100 billion." Broadcom says it has line of sight to deploy over 10 gigawatts of computing capacity for Anthropic, over 5 for OpenAI, and about 3 for Meta through 2028.

Valuation and Analysts

The pullback has made the stock cheaper. AVGO is currently trading at approximately 19 times forward earnings and StockAnalysis shows a Strong Buy consensus from 51 analysts, with an average target price of $529.10, about 61% above Monday's close. Tigress Financial initiated coverage on October 22 with a Buy rating and $600 target.

Broadcom Technical Analysis: 4-Hour Close Below $319.99 Could Open $303.75

Concerns about financing showed up on the 4-hour chart, where AVGO has produced lower highs in a declining trendline since August. It is also below both the 50-period and 200-period moving averages, which are at $346.09 and $356.15, respectively. Last week, buyers defended $319.99, a level that has halted the previous decline, and propelled it off its lows. The same caution about the deal was evident in after-hours trading. After buyers stepped in, the price finished the day well below $341.23.

RSI, which measures momentum and runs from 0 to 100, has climbed to about 41, and moved above its signal line. Overall, the indicator still points to a lack of momentum.

AVGO Price Chart - Source: Tradingview

From a technical perspective, a close above $341.23 would indicate a short-term bullish bias and target $357.21, followed by $363.28, while a close below $319.99 would indicate a bearish bias and target $303.75, followed by $289.02, just below the 52-week low at $289.96. I am cautiously bearish AVGO below $341.23.

Key Levels

• Last Close: $329.17, + $7.49, + 2.33% on 10/26
• Support: $319.99, $303.75, $289.02
• Resistance: $341.23, $346.09, $356.15, $357.21
• RSI: 40.51 above its signal line
• Bullish trigger: 4-hour close above $341.23
• Bearish trigger: 4-hour close below $319.99

FAQs

What is the $63 billion Broadcom Anthropic financing?

A special purpose vehicle will be set up to buy Broadcom's AI chips and lease them to Anthropic. Bank of America, Citigroup, Morgan Stanley, and Blackstone arranged the $63 billion debt financing for the special purpose vehicle. Broadcom has provided residual value support to the lenders. Deliveries will commence in 2027.

What is the Broadcom stock forecast?

The bias is cautiously bearish below $341.23 on the 4-hour chart. A close above $341.23 would target $357.21 and $363.28. A close below $319.99 will open $303.75 and $289.02.

Bottom Line

Broadcom is guiding to about $115 billion of AI revenue for the next fiscal year. Investors are interested to find out how much of this growth is backed by Broadcom supporting its biggest customers. The number that matters is $341.23. In my opinion, the falling trendline keeps sellers in control below it. The 4-hour chart supports a move to $303.75.