Mizuho Sees Anthropic as Broadcom’s (AVGO) Fourth Hyperscale ASIC Partner, Raises Target

Broadcom Inc. (NASDAQ:AVGO) is one of the Trending AI Stocks on Wall Street’s Radar. On October 21, Mizuho reiterated the stock as “Outperform” and raised its price target to $435 per share from $430. The firm now believes Anthropic is Broadcom’s fourth customer.

“Reiterate AVGO at Outperform, raise PT to $435 (prior: $430), 42.7x our C26E P/E as we note AVGO now potentially with 5 Hyperscale ASIC customers (out of a possible ~7), as it continues to see its TAM/share expand with leadership in the AI ASIC market.”

Mizuho sees Anthropic on the track to ramp $10B of revenue with “AI Racks” in the second half of 2026. According to the analysts, this news is potentially negative for Marvell (MRVL), and Anthropic “adds additional tailwinds” for Broadcom.

“AVGO – Anthropic to potentially be ‘customer #4’ as OAI now ‘#5’ and incremental with 2GW in 2025E. We now believe Anthropic is AVGO’s fourth customer, ramping to $10B of revenue with ‘AI Racks’ in 2HF26E (potentially negative for MRVL/Trainium). The 10GW OAI partnership (Link) is incremental: AVGO’s fifth customer ramping 4QF26E as OAI is targeting ~2GW capacity buildout in 2026E, up ~2× y/y. We see OAI ramping 2GW/3GW/4GW in 2026/27/28E respectively across GPUs/ASICs. We believe other major CSPs ramping 2–4GW over the next few years, notably below headline GW amounts. AVGO also launched its third-gen CPO Tomahawk 6-Davisson with ~70% lower power needs and 1M flap-free hours (we believe could need >5M flap-free hours for reliability). AVGO also announced its new Thor Ultra 800G NIC with telemetry, load-balancing RoCE and open architecture, while also expanding its Jericho product line to support Scale Across. Raising ests/PT to $435 as Anthropic adds additional tailwinds.”

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

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