Shares of Broadcom Inc. (NASDAQ: AVGO) climbed more than 4% on Tuesday after DA Davidson upgraded the chipmaker and four major financial firms announced $63 billion in financing for Broadcom equipment destined for Anthropic. The announcements followed Anthropic's public filing for a planned listing on the US stock market, a disclosure that detailed the startup's equipment lease commitments to the chipmaker.

DA Davidson Lifts Broadcom to Buy, Sets $400 Target

DA Davidson analyst Gil Luria raised his rating on Broadcom to Buy from Neutral and increased his price target to $400 from $350. The new target stood roughly 22% above Monday's closing price.

In laying out his case, Luria pointed to Broadcom's valuation of about 16 times estimated 2027 earnings. He expects Anthropic's planned offering to provide capital for further AI expansion, and he also anticipates that OpenAI will seek public funding next year.

The upgrade arrives after recent pressure on Broadcom shares, even as the company projects growth in AI chip sales.

Anthropic's S-1 Discloses $161.2 Billion in Lease Payments

Anthropic filed its S-1 registration statement with the Securities and Exchange Commission on October 26 — the standard document a company must file before its shares can trade publicly, laying out its finances for prospective investors. The developer of the Claude chatbot plans to list on the Nasdaq under the ticker ANT, although it has not yet announced an offering price or date.

The filing lists five-year equipment leases with Broadcom carrying approximately $161.2 billion in rent payments, excluding interest. Broadcom designs custom AI accelerators and networking hardware for large technology customers — the category of equipment at the heart of these commitments. Anthropic pays on a quarterly basis, generally after the equipment becomes ready for use at third-party data centers. Some of that computing capacity entered service in 2026, with additional capacity scheduled to come online in 2027.

Four Financial Firms Arrange $63 Billion Financing Package

Bank of America, Blackstone, Citigroup and Morgan Stanley announced funding for Broadcom processors and networking products destined for Anthropic. Under the structure, a newly created company will purchase and lease the hardware.

Bank of America, Citi and Morgan Stanley will arrange approximately $43.5 billion in senior loans, while Blackstone will provide a lower-priority portion of the financing. Broadcom will help protect lenders against possible future losses in the value of the equipment — an arrangement that ties the chipmaker's own balance sheet to how the leased hardware holds up over time.

The agreement comes as other AI hardware purchases draw substantial funding, including recent financing arranged for Nvidia graphics processors.

AI Investment Plans Face Further Tests

Other technology companies are also seeking funds for computing expansion. Meta recently outlined plans to raise up to $95 billion for AI development, through an initial share offering and a possible later program. Broadcom, Nvidia and AMD have expressed interest in purchasing some of those shares.

Broadcom, for its part, expects deliveries under its Anthropic computing agreement to begin in 2027. The company's sales outlook depends in part on customer spending, production schedules and access to financing. The nearest markers to watch are Anthropic's decision on an offering price and listing date, and the pace at which newly leased capacity comes online through 2027.

This article first appeared on Blockonomi.