Anthropic IPO Set for Thursday as Investors Eye AI Sector Shift

Artificial intelligence equities experienced consecutive declines heading into the weekend as markets continued to digest the sudden resignation of Nvidia CEO Jensen Huang. Huang had served as the central figure of the artificial intelligence boom, guiding a company that controls roughly 90% of the market for data center graphics processing units. His exit introduces uncertainty regarding Nvidia's financial backing of various research labs and neoclouds, prompting heightened scrutiny over the sector's interconnected financing structures.

Attention now turns to the upcoming public offering of artificial intelligence lab Anthropic, scheduled to begin trading on Thursday, November 19. The company lowered its target valuation to $1.4 trillion, down from an anticipated $2 trillion earlier in the year, reflecting growing investor caution surrounding the technology sector. Despite the downward revision, Bloomberg reported that the public offering is already six times oversubscribed during its roadshow, signaling robust demand that could outpace the initial available share float.

Anthropic reported an October run rate revenue of $81 billion, placing its valuation at approximately 17 times sales with triple-digit revenue growth and an adjusted operating profit. The company features a staggered lockup structure permitting directors, officers, and non-founder employees to unload up to 10% of their holdings immediately upon market entry, while other participants face a traditional 180-day restriction period. A successful market debut could shift the sector's narrative away from chip hardware and onto direct application developers, potentially providing a much-needed lift to the broader technology market.

What to watch next: Monitor Anthropic's market debut on Thursday, November 19, alongside Nvidia's upcoming earnings report on Tuesday.