UBS reaffirms Broadcom (AVGO) buy rating amid AI ASIC demand and OpenAI/Anthropic growth.

UBS reaffirmed its Buy rating and $485 price target for Broadcom Inc. (NASDAQ: AVGO) on June 12, citing the company's special purpose vehicle deal with Apollo and Blackstone. The firm noted that back-end supply constraints have emerged as a concern, prompting adjustments to Broadcom's schedule for the upcoming v9 version of Google's TPU.

The SPV arrangement formalizes existing agreements Broadcom has helped scale with OpenAI and Anthropic for calendar 2027. According to UBS, the structure helps define capacity allocation and financing mechanisms. The bank's model accounts for approximately 6GW of Anthropic TPU demand and an estimated 1.3GW from OpenAI.

UBS projects that two-year cumulative AI accelerator exports could total 20GW, with approximately 13GW of shipments expected by calendar 2028. The firm estimates that the 13GW capacity serving Anthropic and OpenAI alone—at $10–15 billion per gigawatt for ASIC and networking components—could generate $130–190 billion in revenue, before accounting for additional demand from Google Cloud Platform TPU shipments and META.

Broadcom specializes in semiconductor devices through its Semiconductor Solutions segment and infrastructure software solutions through its Infrastructure Software segment, positioning it to capture demand across both the chip manufacturing and networking layers of AI infrastructure.