Broadcom's $63 Billion Anthropic Deal Comes With a Catch: Broadcom Is Backing the Loan
Published on 10/27/2026 at 15:31 | Editorial boerse-global.de
D.A. Davidson upgraded Broadcom to "Buy" from "Neutral" on Friday, lifting its price target to $400 from $350, as analyst Gil Luria argued that Anthropic's freshly filed IPO paperwork could unlock the capital needed to fund years of chip purchases. Investors took the view on board: the stock climbed 4.6% on the day, building on a 3.0% gain the previous session after Broadcom and its banking partners unveiled the financing structure underpinning the whole arrangement.
The centerpiece is a $63 billion transaction announced Thursday by Broadcom alongside Bank of America, Blackstone, Citi and Morgan Stanley. A newly formed special purpose vehicle will purchase Broadcom's XPU AI accelerators and networking gear, then lease the equipment to Anthropic, with deliveries slated to begin in calendar 2027. The structure deliberately separates ownership of the hardware from its use — a financing arrangement for equipment to be bought and rented out, not a revenue figure already on the books.
The Guarantee Behind the Headline Number
What matters for shareholders sits beneath the transaction's size. Broadcom has committed to a residual-value guarantee matching the amount of the senior financing. Reuters, citing two people familiar with the deal, put that senior tranche at roughly $43.5 billion; the parties have not published an official breakdown. Bank of America, Citi and Morgan Stanley are arranging the first-lien loans, while Blackstone is providing the committed portion of the subordinated second-lien financing.
According to the Wall Street Journal, the negotiations were far from routine. Banks demanded better terms amid rising interest rates and concerns about excessive AI exposure, and CEO Hock Tan signed off on higher financing costs and additional guarantees against a potential Anthropic default. The upshot: a supplier that has also taken on a sizeable slice of the funding risk.
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A Fee for the Exposure
Rosenblatt, which reiterated its Buy rating and $600 target on Friday, points out that the guarantee is not purely a cost. Broadcom earns roughly 200 basis points on the backstop amount on top of the chip price, according to the firm. Even so, the arrangement only pays off if Anthropic can put the leased capacity to productive use and meet its obligations — and Moody's has flagged elevated risks from several such transactions completed in quick succession.
Revenue recognition adds another layer of caution. Rosenblatt notes that Broadcom books chip sales only on delivery and acceptance. The new package covers Anthropic computing capacity in fiscal 2027 and addresses just a portion of that year's anticipated funding needs.
Two IPOs, One Thesis
Luria's upgrade rests on more than a single customer. He reads Anthropic's IPO filing — submitted Thursday, with size and price range still undetermined — as a sign that the listing will go ahead and bring in fresh capital. A successful offering, in his view, could also smooth OpenAI's path to raising its own funds next year. Both financings must materialize for the added upside to count, making this a conditional investment case rather than confirmation of secured future earnings.
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On valuation, Luria calculates Broadcom trades at 16 times expected 2027 earnings, a multiple he considers attractive given the potential capital inflows. One signal predates the news: Tigress Financial initiated coverage with a Buy rating and a $600 target on Thursday, a call reported in the media that came before the financing announcement and therefore reflects no reaction to the Anthropic deal.
For now, the transaction gives Broadcom a clearer runway for future shipments tied to Anthropic. Turning that into predictable revenue — while carrying part of the funding risk — is the test the market will be watching.
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