Broadcom Price Target Lowered Amid Anthropic Demand Uncertainty

RBC Capital analyst Srini Pajjuri lowered the price target on Broadcom to $340 from $370 and maintained a ‘Sector Perform’ rating on its shares.

• Pajjuri said that the sustainability of Anthropic’s demand beyond the first half of FY27 looks less clear, given the AI lab’s agreement with Nvidia and Microsoft.
• On the earnings front, RBC Capital expects Broadcom to report a beat, backed by strong TPU and networking demand, ahead of its Q1 earnings due on March 4.
• The analyst also said that the competition from Taiwanese semiconductor company MediaTek was not overly concerning.

Shares of Broadcom Inc. garnered Wall Street attention ahead of the company’s first-quarter (Q1) 2026 earnings results due on March 4. RBC Capital lowered its price target on Broadcom, citing concerns over the lack of visibility into its customer Anthropic’s demand.

RBC Capital analyst Srini Pajjuri lowered the price target on Broadcom (AVGO) to $340 from $370 and maintained a ‘Sector Perform’ rating on its shares.

AVGO stock was down 1.7% at the time of writing.

Analyst Rationale

RBC Capital’s Pajjuri said that the sustainability of Anthropic’s demand beyond the first half of FY27 looks less clear, given the AI lab’s agreement with Nvidia Corp. (NVDA) and Microsoft Corp. (MSFT).

In Dec. 2025, Broadcom CEO Hock Tan said at the fourth-quarter (Q4) earnings call that the company had signed Anthropic as a customer, which had placed a $10 billion order for Google’s tensor processing units, with an additional order of $11 billion for the subsequent order.

Meanwhile, Anthropic also committed to purchasing $30 billion of Azure compute capacity for up to one gigawatt, powered by NVIDIA Grace Blackwell and Vera Rubin systems.

On the earnings front, RBC Capital expects Broadcom to report a beat, backed by strong TPU and networking demand. The analyst also said that the competition from Taiwanese semiconductor company MediaTek was not overly concerning.

Earnings Expectations

For Q1, Wall Street expects Broadcom to report revenue of $19.1 billion, a 22.4% increase from the same period last year. Meanwhile, the company is expected to post earnings per share of $2.02, compared to $1.6 in the same period of 2025.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around AVGO shares jumped to ‘extremely bullish’ from ‘bullish’ territory over the past 24 hours, amid ‘high’ message volumes.

One bullish user said they expect AI revenue to double, calling the shares ‘undervalued.’

Shares of AVGO have risen more than 67% in the past year.

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