The recent stock market downturn arrives at a pivotal juncture for Anthropic (ANTH.PVT). The sell-off has clouded the AI developer’s anticipated pre-Thanksgiving public offering, sparking concerns about its valuation and capacity to maintain momentum through the next stage of artificial intelligence expansion.
“The Anthropic IPO is the only story that matters for the remainder of the year,” said Willy Lee, principal at Neostellar, during an appearance on Yahoo Finance’s Market Hang. Lee noted that investors are focused on whether Anthropic can deliver sustained long-term growth and capture a significant portion of the AI market.
“Those are the two questions every investment committee is asking daily ahead of the offering,” Lee added.
Anthropic recently disclosed that revenue surged 1,206% to $33.2 billion over the first nine months of the year. The company also reported aggregate committed spending of $895.4 billion, primarily tied to compute and infrastructure.
The AI growth narrative faced a test this week as investors weighed a Democratic congressional victory against the implications of the AI data center build-out. On Thursday, the Nasdaq Composite (^IXIC) posted its steepest daily decline since April 2025, led by losses in chip stocks.
The market turbulence led prospective buyers to discuss reducing Anthropic’s valuation to between $1.2 trillion and $1.3 trillion, with some considering figures as low as $1.1 trillion, according to Bloomberg. This falls well short of early October projections that approached $2 trillion.
Amid growing unease over AI equities, Anthropic confronts a difficult decision—especially if the unwinding of the AI trade persists.
“Going public would be difficult under current conditions,” said Anna Rathbun, founder and CEO of Grenadilla Advisory, on Yahoo Finance’s Market Hang.
Kevin Mahn, chief investment officer at Hennion & Walsh, said that delaying the IPO could be interpreted by investors as a bearish signal for the AI trade.
“If they proceed and the IPO underperforms or falls short of expectations, that could also be perceived as bearish,” Mahn said. “It’s a no-win scenario.”
Investors will also look to Nvidia (NVDA) earnings on Nov. 17 for signals about the health of the AI trade. With Alphabet (GOOG, GOOGL), Microsoft (MSFT), Amazon (AMZN), and Meta (META) already reporting, along with Taiwan Semiconductor Manufacturing (TSM) and ASML (ASML), expectations are high that Nvidia will beat estimates and raise guidance.
“We’ve already received substantial confirmation,” said Shay Boloor, chief market strategist at Futurum. “I’d put the chance of a miss at 1%.”
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