Broadcom Stock Is 29% Below Its Record. After Its New Anthropic Deal, I'd Consider Buying It a Little at a Time.

Broadcom (AVGO) has lined up a $63 billion financing deal with major banks to fund AI chip sales to Anthropic, and the company is backstopping up to $43 billion of potential liability. That backstop turns a sales story into a balance-sheet story.

AVGO sits 29% below its June record. At 18x forward earnings, the stock looks fairly valued by the analyst's read, not stretched. Management expects AI chip revenue to double in fiscal 2027, which gives the multiple a growth anchor.

The tradeoff is concentration. The Anthropic arrangement ties a large share of future AI chip demand to one customer, and Broadcom's up-to-$43 billion backstop means it carries real exposure if that customer falters. Our interpretation: the financing structure helps secure the revenue, but it also makes Broadcom a participant in Anthropic's credit risk, not just a supplier.

The source analyst's stance is measured: consider buying a little at a time, not all at once. That reflects the gap between a reasonable 18x multiple and the single-customer dependency behind the doubling forecast.