Broadcom’s Price Target Cut to $340; Launches VMware Telco Cloud Platform 9
RBC Capital lowered Broadcom’s price target to $340 from $370 while retaining a Sector Perform rating, citing expected Q1 beat driven by strong TPU and networking demand. Broadcom also unveiled VMware Telco Cloud Platform 9, promising up to 40% five-year cumulative TCO savings over siloed architectures.
1. Analyst Price Target Revision
On March 2, RBC Capital adjusted Broadcom’s price target down to $340 from $370 while maintaining a Sector Perform rating. The firm highlighted expected fiscal Q1 results to beat consensus based on robust demand for tensor processing units and networking solutions.
2. Q1 Expectations and Anthropic Concern
Analysts anticipate a beat-and-raise quarter fueled by TPU and networking sales, but flagged uncertainty around Anthropic’s long-term demand ramp, given its agreements with Microsoft and Nvidia. Broadcom’s visibility into Anthropic-driven revenue beyond the first half of fiscal 2027 remains limited.
3. VMware Telco Cloud Platform 9 Launch
Broadcom introduced VMware Telco Cloud Platform 9, built on VMware Cloud Foundation 9 with added telecom-specific capabilities. The platform targets a unified infrastructure for telco data centers, offering an estimated 40% five-year cumulative total cost of ownership savings versus siloed architectures.