Broadcom Stock Price Forecast: $63 Billion AI Funding Supports Anthropic's Purchase of Broadcom Chips, Shares Poised to Return to $400

TradingKey - As of the close on October 27, Eastern Time, boosted by positive news surrounding Anthropic's $63 billion AI infrastructure financing, Broadcom (AVGO) shares rose 4% to close at $342.33, touching an intraday high of $345.67, advancing for a second consecutive session after gaining 2.33% in the previous trading day.

$63 Billion Financing Backs Anthropic’s Purchase of Broadcom AI Chips

Bank of America (BAC), Blackstone (BX), Citi (C), and Morgan Stanley (MS) announced on October 26 a $63 billion financing arrangement to support Anthropic in expanding its AI computing power. The transaction will be executed through a newly established special purpose vehicle (SPV), which will use the raised funds to purchase Broadcom's XPU AI accelerators and networking solutions and subsequently lease the equipment to Anthropic, with deliveries expected to begin in 2027. Among them, Bank of America, Citi, and Morgan Stanley are providing the first-lien financing, while Blackstone is providing a portion of the second-lien financing.

For Anthropic, this financing increases funding certainty for deploying Broadcom's AI chips at scale. Anthropic had previously entered into multi-gigawatt next-generation computing cooperation agreements with Google (GOOGL) and Broadcom, with plans to bring the relevant computing capacity online starting in 2027. Therefore, this $63 billion financing primarily provides funding support for its existing computing expansion plans.

For Broadcom, order visibility for future XPU and networking equipment has further improved. However, Broadcom is also providing equipment residual value support for part of the financing; if AI hardware prices drop rapidly in the future or project repayment issues arise, it could also increase the company's financial risk.

Broadcom Stock Technical Analysis

Broadcom daily stock chart, Source: TradingView

From the daily chart of Broadcom's stock price, Tuesday's rise confirmed a breakout above the resistance of the 5-day and 10-day moving averages, indicating that the short-term bullish structure has shown signs of recovery. However, the stock faces resistance from the 20-day and 60-day moving averages above. In the short term, if it can break above and hold steady over these two moving averages, its bullish momentum will be significantly strengthened.

Currently, the primary resistance level to watch on the upside is $343-$347. If the stock can break out and hold above $347, it will further challenge the resistance level at $380. If it continues to break above this level, it will open up upside space toward the resistance level at $430.

On the downside, the primary support level to watch is $338. If this level is breached, the stock may move down to fill yesterday's gap around $332, or even continue downward to test the low of $320.