Early signals for Anthropic’s (ANT) IPO indicate a huge uptick on its first day of trading. Bloomberg reports that the IPO is already oversubscribed multiple times over.
Anthropic previously had a valuation in the $1.8 trillion to $2.0 trillion range. That fell below $1.8 trillion when the sell-off in tech names like SanDisk (SNDK), Micron Technology (MU), and SK Hynix (SKHY) unfolded.
Despite the weakening market conditions, Anthropic forged ahead with the IPO. It wants to raise $90.4 billion. That is higher than SpaceX’s (SPCX) IPO, which raised $75 billion at $135 per share. After adding a greenshoe option of $10.7 billion, the total raised topped $85.7 billion.
Nasdaq (QQQ) will follow the success or failure of the Anthropic IPO. The company committed to spend $895 billion to $1 trillion in AI hardware through 2045. If it fails to raise the $90B, it would slow future funding rounds. That would hurt the companies invested in Anthropic, including AMD, Broadcom (AVGO), Alphabet (GOOG), Micron, Microsoft, Nvidia (NVDA), and TSMC Partners (TSM). Anthropic has hardware commitments (purchase orders) from those firms.
Trade ANT’s IPO
The ANT IPO will likely attract speculators. They will likely sell into the rally that day to lock in profits. Investors might sit out of the IPO. Instead, they will watch the stock in the months that follow. They saw that CoreWeave (CRWV), Cerebras (CRBS), and SpaceX traded sharply lower from their short-lived 52-week highs.
That would suggest Nasdaq rallies and retests recent lows in the coming weeks.
