Broadcom: Anthropic's IPO Is Derisking The Bull Case

Broadcom's nearly 32% retreat looks excessive to the author, as custom XPU demand supports accelerating revenue and operating profit growth. Lower gross margins reflect rising HBM content rather than collapsing demand, with management guiding for a stable 66% operating margin. Anthropic's potential public listing could improve funding flexibility and reduce customer financing concerns, although Broadcom's concentrated exposure remains a substantial risk.