Analysis of Broadcom (AVGO) Post-Q4 Earnings and Anthropic's 2026 Revenue Prospects

The Reddit discussion on 2025-12-13 expressed bearish views on Broadcom (AVGO)’s short-term performance and skepticism of AI startup Anthropic’s $20B 2026 revenue target due to high cash burn [0]. However, official financial data reveals a more nuanced picture: Broadcom’s Q4 2025 revenue ($18.02B) beat Wall Street consensus estimates ($17.46B) [1][2], and its FY2025 AI revenue reached $20B, accounting for 31% of total revenue [6]. The stock’s ~11.44% decline by 2025-12-13 stemmed from margin concerns, not missed revenue targets—Q4 gross margin was 77.9%, but Q1 FY2026 guidance dropped to 67% due to lower-margin AI semiconductor sales [1].

For Anthropic, the Reddit OP’s $20B 2026 revenue estimate is below the startup’s own ~$26B projection [4]. While Anthropic burns significant cash, it has secured $20.5B in funding since 2024 (backed by Google and Amazon) and plans a 2026 IPO, addressing capital concerns [4][5]. Additionally, Broadcom confirmed Anthropic as its fourth AI customer with an $11B order for late 2026 [3], confirming the startup’s infrastructure scaling to support revenue growth.

1. Disconnect Between Reddit Sentiment and Financial Reality
   : The Reddit OP’s bearish view on Broadcom’s revenue performance is unfounded, as the company beat estimates; the stock decline is driven by margin dilution, not top-line weakness [1][6].
2. Anthropic’s Funding and IPO Mitigate Cash Burn Risks
   : Contrary to the OP’s concern about funding, Anthropic’s $20.5B in raises and planned 2026 IPO provide a clear runway for growth [4][5].
3. Broadcom’s AI Backlog Drives Long-Term Growth
   : The $73B AI backlog (including Anthropic’s $11B order) and 100% YoY Q1 AI revenue growth guidance ($8.2B) position Broadcom as a leader in AI infrastructure, offsetting short-term margin worries [6].

• Risks
  : Short-term margin pressure from AI semiconductor sales, ongoing market reaction to reduced Q1 FY2026 margin guidance, and near-term stock volatility [1][0].
• Opportunities
  : $73B AI backlog, 31% of revenue from AI (a high-growth segment), and leadership in AI infrastructure chips [6].

• Risks
  : Continued cash burn, execution challenges to meet its ~$26B 2026 revenue target, and competitive pressure from other AI startups and tech giants [4][5].
• Opportunities
  : Strong product (Opus model), backing from Google/Amazon, 300k+ business customers, and a planned 2026 IPO to raise additional capital [4][5].

• Broadcom (AVGO) Q4 2025 revenue: $18.02B (beat consensus $17.46B) [1][2].
• AVGO stock decline: ~11.44% as of 2025-12-13, driven by margin concerns [0][1].
• Broadcom FY2025 AI revenue: $20B (31% of total) with a $73B AI backlog [6].
• Anthropic 2026 revenue projection: ~$26B (higher than Reddit OP’s $20B estimate) [4].
• Anthropic funding: $20.5B since 2024, with a 2026 IPO plan [4][5].