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Investing.com -- Mizuho analyst Vijay Rakesh raised the firm’s estimates and price target for Broadcom to $435 in a note on Monday, citing new AI-driven growth catalysts from partnerships with Anthropic and OpenAI.
The firm said it now believes Anthropic is Broadcom’s fourth-largest customer, adding that the company’s expanding AI rack deployments could generate roughly $10 billion in revenue by the second half of 2026.
“We were on the ground at OCP last week following key announcements,” Rakesh wrote, noting that “Anthropic adds another tailwind.”
The analyst stated that Anthropic is “potentially now customer number 4” for Broadcom, while OpenAI (“OAI”) is “number 5 with a ~10GW deal.”
Mizuho added that “we now believe Anthropic is AVGO’s fourth customer, ramping to $10B of revenue with ‘AI Racks’ in 2HF26E.”
The firm also remarked that OpenAI’s partnership is “incremental,” targeting approximately “2GW capacity buildout in 2026E, up ~2x y/y.”
It expects OAI’s deployments to reach “2GW/3GW/4GW in 2026/27/28E respectively across GPUs/ASICs,” while other major cloud service providers could ramp 2–4GW over the next few years.
Broadcom also introduced new networking technologies to support the AI buildout. Mizuho highlighted the company’s third-gen CPO Tomahawk 6-Davisson with over 70% lower power needs and its new Thor Ultra 800G NIC with telemetry, load-balancing RoCE and open architecture.
Mizuho described Broadcom’s new Ethernet for Scale-Up Networking, or ESUN, as “a key announcement,” saying it “expands the scope originally covered by SUE-T” and “could increase share in Scale-Up vs NVLink/UALink.”