Early Bird Prime for November 1, 2026

Broadcom's $AVGO ( ▼ 5.48% ) stock is down 6.20% in 2026, and it’s been on a decline since it hit a 52-week high in June. The semiconductor sector is feeling the heat. High valuation concerns and some commercial and financial backstop risks are making investors jittery.

Just when you thought Broadcom was down for the count, investment firm D.A. Davidson swoops in this week, upgrading the stock to Buy from Neutral. They've even upped the price target to $400 from $350. Why the sudden change of heart? Well, Broadcom just announced it secured $63 billion in financing to deploy its AI chips for Anthropic. With Anthropic’s IPO likely to proceed, Broadcom might just meet its expectations for the next couple of years.

But hold your horses, because a few weeks ago, Broadcom was reportedly in early discussions to arrange more than $50 billion in debt financing to help OpenAI fund purchases of custom AI chips.

While Broadcom benefits from the equipment sale, it retains some downside if the financing for Anthropic or OpenAI runs into trouble. It is a complicated position for some investors.

Should you buy or avoid Broadcom’s stock right now in 2026? Here’s the answer…