Anthropic’s offering will be a key test of investor appetite for AI companies after recent concerns over stretched valuations and heavy spending sparked a rout in chip stocks. Investors are also bracing for the Federal Reserve’s rate decision Wednesday and earnings from megacap companies this week, which will offer fresh clues on the outlook for the AI trade.
“Anthropic’s IPO filing is expected to reignite interest in the AI sector,” said Hideyuki Ishiguro, chief strategist at Nomura Asset Management. Semiconductor stocks are poised for a near-term rebound, given their cheap valuations and improving technical signals, he said.
Anthropic filed its long-awaited S-1, moving closer to becoming the first publicly traded company focused primarily on developing advanced AI models. Investors are scrutinizing the filing for clues on AI demand after weeks of doubts over the trade.
The renewed optimism follows a volatile week for technology shares. The Nasdaq 100 tumbled 2.9% on Thursday, a day after Meta Platforms Inc. raised its capital-spending guidance above operating cash flow, rattling investors seeking evidence that massive AI outlays are paying off.
That question will be tested again this week when some of the biggest AI spenders report earnings. Alphabet and Microsoft Corp. are due Wednesday, followed by Amazon.com Inc. and Intel Corp. on Thursday. Investors will be watching their spending plans and, crucially, whether those investments are generating sufficient returns.