Broadcom (AVGO) Stock Surges to Record High on Wall Street Upgrades and Massive AI Deal

Table of Contents Broadcom (AVGO) shares advanced 4.2% during Thursday morning’s session on May 29, establishing a fresh record at $448.58. The rally followed a series of bullish analyst revisions and significant developments in AI-focused financing arrangements. Broadcom Inc., AVGO Christopher Rolland of Susquehanna elevated his AVGO price objective to $490 from the previous $450 level, maintaining his Positive stance. Rolland expressed confidence in “Broadcom’s ASIC operations and anticipates sustained strength across their networking product line.” Stefan Chang at Aletheia Capital pushed his target even higher, moving from $500 to $525. Chang emphasized that “immediate financial results matter less than the firm’s TPU commentary,” observing that Google seems to have adjusted its inferencing TPU strategy toward TPUv8i for the 2027-2028 timeframe. UBS recently increased its price objective to $490 as well, pointing to a revised Anthropic contract expected to yield improved profit margins. Evercore kept its Outperform designation, highlighting robust demand in AI networking solutions. The timing carries significance. With Broadcom’s fiscal second-quarter financial report scheduled for June 3, these bullish revisions arrive at a particularly impactful moment. Apollo and Blackstone are presently pursuing additional backers for a $36 billion debt financing package linked to Anthropic’s AI infrastructure buildout. Broadcom serves as the payment guarantor for the arrangement’s largest component. This represents a substantial commitment. Acting as credit backstop on the primary portion of a $36 billion financing demonstrates institutional confidence that extends far beyond conventional chip vendor relationships. Additionally, Broadcom revealed a fresh collaboration with FuriosaAI. This partnership will integrate FuriosaAI’s Tensor Contraction Processor design with Broadcom’s networking capabilities to develop a multi-die chiplet platform designed for AI inference applications within data center environments. This agreement expands a client roster that currently features Google, Meta, ByteDance, and Anthropic. Jim Cramer discussed Broadcom on Mad Money, describing it as “a sleeper” and highlighting CEO Hock Tan as “a shrewd businessman who’s constantly getting new clients.” Cramer mentioned the Charitable Trust has maintained AVGO exposure consistently, despite reducing the position slightly on April 24. Hock Tan’s statements from the Q1 earnings call remain influential. During that discussion, he revealed having “line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027,” with manufacturing capacity already arranged through 2028. This projection continues appearing prominently in Wall Street analysis, and the reasoning is clear. Broadcom delivered revenue expansion of 25% across the trailing twelve-month period. The broader equity markets provided support Thursday, with the S&P 500 gaining 0.4%, the Dow advancing 0.4%, and the Nasdaq climbing 0.6%, powered by technology shares. As the June 3 earnings date approaches, market participants will focus intently on any updates regarding AI customer agreements and advancement toward that 2027 revenue objective.