Broadcom Falls 4% as $230 Billion AI Forecast Hinges on Private Anthropic
Updated
Updated · 24/7 Wall St. · Sep 3
Broadcom Falls 4% as $230 Billion AI Forecast Hinges on Private Anthropic
3 articles · Updated · 24/7 Wall St. · Sep 3
Summary
Broadcom slid to about $352 after Jim Cramer argued its AI outlook is effectively "Anthropic or bust," tying the chipmaker’s biggest growth thesis to a private company retail investors cannot own.
Hock Tan’s guidance drove the concern: Broadcom expects AI semiconductor revenue of about $115 billion in fiscal 2027 and $230 billion in 2028, even after Q3 AI chip revenue jumped 221% year over year to $16.7 billion.
Anthropic is central to that ramp, with Broadcom saying it is on track to become its largest XPU customer in 2027 after planned deployments of 1 gigawatt in 2026 and 5 gigawatts in 2027.
That concentration risk is already flagged in Broadcom’s 8-K, while Nvidia traded up 2% as investors viewed its AI demand base—spanning OpenAI, Anthropic and broader geographies—as more diversified.
For Broadcom holders, the next validation points are any Anthropic IPO filing and Broadcom’s Dec. 9 fiscal Q4 report, which could show whether the customer mix behind the forecast is holding.