DA Davidson upgrades Broadcom to Buy and lifts price target to $400
According to Seeking Alpha, DA Davidson raised its Broadcom rating to Buy and its target to $400, and the shares gained 2.5% premarket.
- published on Newsmetry
- original source published
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →
what happened
Broadcom shares climbed 2.5% in premarket trading on Tuesday after DA Davidson moved its rating on the company from Neutral to Buy, Seeking Alpha reported. Analyst Gil Luria said the Anthropic S1 filing suggests the IPO will go ahead, and that capital raises by Anthropic and OpenAI would let Broadcom meet its expectations for the next couple of years. He raised his target from $350 to $400.
Luria argued the largest dislocation in the market is that Broadcom, Micron and Nvidia trade as if the AI spending boom is over, at 5 to 16 times estimated 2027 earnings, while the rest of the AI trade assumes the cycle continues. He expects fundamentals to drive a return toward average valuations.
why it matters
The gap matters for the whole semiconductor group: if the Anthropic and OpenAI listings happen as the analyst expects, the valuation difference between chip names and the broader AI sector could narrow. Investors will watch IPO timelines and capital plans, which underpin the view. The note concerns one stock and reflects an analyst opinion, not a company announcement.
tags
instruments
sources
- Broadcom rises on back of DA Davidson upgrade — Seeking Alpha, 27 October 2026 at 12:35 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.
get stories in real time ↗