Anthropic IPO Sparks AI Sector Rally; Key Stocks and Funds to Watch

Anthropic’s anticipated initial public offering has reinvigorated investor interest in artificial intelligence equities, driving broad-based gains across technology sectors. The move comes as traders position themselves ahead of what could become one of the largest IPOs in market history, with reported valuation targets ranging from $1.5 trillion to $2 trillion.

Semiconductor stocks led the charge this week, with the iShares Semiconductor ETF (SOXX) climbing 8% through Wednesday’s trading session. Memory-focused equities also surged, propelling the Roundhill Memory ETF (DRAM) up 13% week-to-date. Cybersecurity names weren’t left behind either, as the iShares Cybersecurity & Tech ETF (IHAK) gained 3% during the same period.

“Traders have been anticipating this moment,” noted Jay Woods, chief market strategist at Freedom Capital Markets. “These AI-related fears, rumors, and concerns are expected to subside for now as the market embraces Anthropic’s potential entry into public markets.” Despite the enthusiasm, some caution remains warranted. Historically, many IPOs over the past 15 years have underperformed post-debut, and recent cases like SpaceX—which saw its shares drop from over $225 to $148.58—serve as reminders of volatility risks. Furthermore, CNBC’s Jim Cramer has warned that such a massive offering could strain liquidity within an already competitive market environment.

Nevertheless, eager investors are not waiting for the actual listing date. Instead, they’re positioning early through correlated assets and partnerships tied directly to Anthropic’s growth trajectory.

Equity Picks:

Broadcom emerges as a clear beneficiary due to its strategic alliance with Anthropic. The semiconductor giant recently disclosed plans via a special-purpose vehicle to supply $63 billion worth of chips and networking equipment under lease agreements with the AI leader. Additionally, Anthropic secured a $42 billion financing arrangement with Broadcom to expand AI infrastructure development. Shares rose 8% this week following these announcements.

Neocloud service providers are also seeing heightened attention. Analysts at Truist Securities highlight strong upside potential driven by increasing security demands and agentic computing adoption, both requiring substantial computational resources. Notably, CoreWeave and Nebius Group saw share prices increase nearly 12% and over 8%, respectively, reflecting growing investor confidence.

Amazon and Alphabet represent more direct exposure given their existing stakes in Anthropic. In April, Amazon committed to investing up to $25 billion in the company, while Google announced plans to contribute up to $40 billion, reinforcing long-standing collaborative efforts between the entities.

Fund Strategies:

For diversified access, institutional investors may consider funds holding significant positions in Anthropic-related ventures:

• The Growth Fund of America (AGTHX): Managed by American Funds, this large-cap growth vehicle holds over $350 billion in assets, including approximately $6.35 billion in Anthropic-related securities as of August 31. With YTD returns exceeding 8%, it offers broad exposure with a moderate expense ratio of 0.59%.
• T. Rowe Price Capital Appreciation Equity ETF (TCAF): This $8 billion fund provides blended large-cap exposure and holds a $54 million stake in Anthropic acquired in May. Its portfolio includes key plays like Amazon, Alphabet, and Nvidia, maintaining a low-cost structure at 0.31%.

As anticipation builds around Anthropic’s potential debut, market participants continue evaluating various avenues for gaining strategic footholds in the evolving AI landscape.

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