By Khac Phu Nguyen
Publication Date: 2026-10-27 17:11:00
This article first appeared on GuruFocus.
Broadcom (NASDAQ:AVGO) climbed 3.79% to $341.66 at 9:55 a.m. ET on October 27, as a $63 billion Anthropic financing arrangement put its AI businessand the obligations behind itin focus. Barron’s examined the deal in Tuesday’s coverage. The headline number is big, but it should not be mistaken for revenue already flowing into Broadcom.
The lenders’ announcement outlines a financing vehicle that will buy Broadcom accelerators and networking equipment and lease them to Anthropic, with deliveries expected from 2027. Broadcom is providing residual-value support corresponding to the first-lien financing. That makes the fine print consequential: investors need to understand how much exposure Broadcom carries, how long it lasts and what could trigger payments under that support.
The valuation picture offers another angle. At $341.66, Broadcom trades 21.69% below its displayed…