Broadcom Inc. (NASDAQ: AVGO) closed Tuesday's session at $342.33, up $13.16, or 4%. The stock extended its advance in premarket trading on Wednesday, changing hands at $346.50, up another 1.22% from the prior close.

Two pieces of news drove the move, and they landed at virtually the same time. The first was an analyst upgrade. The second was the disclosure of a massive financing package that will underwrite Anthropic's purchases of Broadcom's artificial intelligence chips. Together, the developments put Broadcom's AI business back in focus. For readers catching up, the upgrade speaks to how the market currently values that AI business, while the financing package shows how its next wave of chip shipments will actually be paid for.

CEO Hock Tan Personally Stepped In to Get the Deal Done

According to an X post from Wall St Engine, Broadcom CEO Hock Tan personally stepped in to get the $63 billion Anthropic chip financing deal done. After nearly two months of negotiations, some banks had been considering pulling out of the arrangement, known as Project North Star. The problem was growing concerns over AI-related debt.

The episode is a reminder that AI chip commitments have become as much a financing story as a technology one: unease over AI-related debt was enough to make lenders reconsider what ranks among the largest debt deals tied to the AI buildout, and it took direct involvement from Broadcom's chief executive to keep the arrangement on track.

Broadcom $AVGO CEO Hock Tan personally stepped in to get the $63B Anthropic chip deal done. After nearly two months of negotiations, some banks were considering pulling out of the deal, known as Project North Star. The problem was growing concerns over AI-related debt and… pic.twitter.com/ombmwUVtqe

— Wall St Engine (@wallstengine) October 27, 2026

D.A. Davidson Upgrades Broadcom to Buy

D.A. Davidson upgraded the stock to Buy from Neutral. Analyst Gil Luria raised his price target to $400 from $350, implying about 22% upside from Monday's close. Luria noted that AVGO trades at 16 times 2027 earnings. He argued that the market is pricing in a near-zero chance that AI spending continues, and he expects valuations to return to the mean over time.

In other words, Luria sees a gap between what the multiple implies about Broadcom's AI outlook and what deals like Project North Star suggest is actually being contracted. His $400 target still sits well below KeyBanc's $575, a spread that captures how differently analysts are weighing the same pipeline.

Anthropic Filing Shows the Scale of the Broadcom Deal

Anthropic filed its Form S-1 on Monday ahead of a planned listing on the Nasdaq under the ticker ANT. The filing shows five-year equipment leases with Broadcom. Rent payments on those leases total about $161.2 billion, not counting interest, with payments due quarterly once the equipment is ready for service.

The S-1 is the registration document a company files before its shares can be offered to the public, and it is where the scale of the Anthropic-Broadcom arrangement is spelled out. The lease math is substantial: $161.2 billion over five years works out to roughly $32 billion a year in average rent payments, before interest. Because the equipment is leased rather than bought outright, Anthropic's buildout will run on financed quarterly payments backed by a bank group, and the Nasdaq listing under ANT is the next concrete step to watch.

Luria said the filing leads him to believe the IPO will go ahead. He also expects OpenAI to raise money in its own IPO next year.

Bank of America, Blackstone, Citigroup, and Morgan Stanley will provide the $63 billion in financing, one of the largest debt deals tied to the AI buildout. About $43.5 billion, or 69%, of the package is first-lien senior debt, according to Reuters — the portion that stands first in line for repayment — while Blackstone is supplying the committed second-lien portion that ranks behind it. Broadcom is giving lenders "residual value support," an arrangement tied to the remaining value of the leased chips over time.

CEO Hock Tan said the deal shows capital is available to finance AI growth.

KeyBanc and Other Analysts Stay Upbeat

KeyBanc reiterated an Overweight rating with a $575 price target. The firm calls Broadcom the dominant AI ASIC provider and says the company won the Anthropic ASIC design, with the chips expected in late 2028 or early 2029. KeyBanc expects 5 million to 10 million lifetime units from that program.

ASICs — application-specific integrated circuits — are custom chips designed around a single customer's workloads rather than general-purpose processors sold to many buyers. That model is why analysts track lifetime unit counts rather than single-quarter volumes, and why the still-pending Meta MTIA Apollo decision matters: each design determines which supplier captures years of a customer's chip production.

KeyBanc also said Broadcom has not lost Meta's MTIA Apollo design to Mediatek. That decision remains pending, and the firm stated that an earlier report claiming otherwise was wrong. It raised its lifetime estimate for OpenAI's Jalapeño chip to 1 million to 1.5 million units. KeyBanc still sees Broadcom's AI revenue above $115 billion in fiscal 2027 and $230 billion in fiscal 2028.

A number of other firms also weighed in. Tigress Financial initiated coverage with a Buy rating and a $600 target. UBS reiterated Buy with a $470 target. Piper Sandler started coverage at Overweight, while Jefferies pointed to Broadcom's DSP share at module makers — the digital signal processors inside the optical modules used for data center connectivity. Across the group, published price targets now span $400 to $600.