# Analyst Vijay Rakesh reiterated its Outperform rating and $480 price forecast on Friday.

*semiconductor · news · 2026-04-17 · Benzinga*

## Key points

- Broadcom is building a major custom chip pipeline for customers like Anthropic and OpenAI, with a significant deal starting in 2027.
- The VMware software segment is expected to generate over $54 billion in annual free cash flow for Broadcom.
- Broadcom's 50-day SMA crossed below the 200-day SMA in March, signaling a rare 'death cross' despite price gains.
- Estimated June 2026 earnings predict EPS of $2.23 and revenue of $21.99 billion, both sharply higher year-over-year.
- Strong ETF weighting means AVGO inflows or outflows could trigger automatic significant stock movements.

**Companies:** Broadcom, Anthropic, OpenAI

[Read the full story on Benzinga](https://www.benzinga.com/analyst-stock-ratings/reiteration/26/04/51884990/broadcoms-secret-weapon-the-massive-ai-chip-deal-set-to-explode-in-2027)

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