Jeremy Bowman, The Motley Fool Fri, November 13, 2026 at 12:35 PM EST 5 min read ANTH.PVT OPAI.PVT NVDA -3.25% SPCX -0.53% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Anthropic's (Nasdaq: ANT) IPO is set for Nov. 19.
The debut of the leading AI lab has been highly anticipated and comes ahead of rival OpenAI's, which pushed its IPO back to 2027.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Despite earlier speculation, Anthropic won't top Space Exploration Technologies' record set earlier this year when it raised $75 billion in its IPO, which valued the Elon Musk-led company at $1.75 trillion.
Anthropic had purportedly aimed for a valuation of $2 trillion, but after updating its IPO filing, the company will now sell shares at a valuation of $1.4 trillion, aiming to bring in $64.4 billion, in addition to a private placement worth $26 billion from several big tech companies. That $1.4 trillion figure is significantly higher than the $952 billion it was worth in a funding round this spring, but it also represents a significant moderation from the $2 trillion it was said to be aiming for.
So why is Anthropic pumping the brakes ahead of its big day? Let's take a look at a few of the reasons.
Dario Amodei on stage at an Anthropic event. Image source: Anthropic.
Timing is crucial for an IPO, and Anthropic may have missed the most attractive period of the IPO window. Over the last month, AI stocks have tumbled, first on concerns that rising interest rates would squeeze the AI infrastructure build-out, and then on fears of a data center crackdown following the midterm elections. Now, Jensen Huang's departure has injected sudden uncertainty into Nvidia and further clouds the prospects for the AI boom.
SpaceX's IPO was timed just as AI stocks were peaking. By contrast, chip stocks like Nvidia, Intel, Arm Holdings, and others are down substantially from then.
With enthusiasm for AI stocks having cooled, it makes sense for Anthropic to scale back its valuation target. However, the company is better off going public now than waiting and risking the IPO window closing further.
The company has made more than $500 billion of purchase commitments to support its growth ambitions, and maintaining positive investor sentiment toward its own stock and AI broadly is key to supporting its growth to fund those investments. Share price movements are their own feedback loop, and if Anthropic can achieve an opening-day pop, it could ignite a surge across the AI sector.
Anthropic has reported surging growth this year, but there's a lot of risk in its business model.
In its S-1, the company disclosed a whopping $895.4 billion of future purchase commitments and lease agreements related to infrastructure and compute.
Many of those agreements are non-cancellable. For Anthropic to be successful, it will have to ramp up its revenue growth and cash flow to pay for those commitments. In an environment where AI investors are already spooked by rising interest rates, it's not a surprise that they would push back on Anthropic's plans to spend nearly $1 trillion.
IPOs typically underperform the market, but Anthropic could be the exception that proves the rule, especially at its lower valuation.
The company reached run rate revenue of $81 billion in October, meaning it trades at just 17 times run rate sales, which is a reasonable valuation for a software stock. Anthropic is also reporting triple-digit revenue growth and an adjusted operating profit, and it's established itself as the leading AI lab. The fate of the AI boom is now riding on Anthropic more than anyone else.
At that price, the stock looks like an attractive buy, even with the expected IPO volatility. While it's certainly a high-risk stock, there's a lot of upside to Anthropic if it fulfills the transformative potential of AI.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you'd invested $5,000 then, you'd be sitting on $2,160,299 today.*
Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It's a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.
*Stock Advisor returns as of November 13, 2026.
Jeremy Bowman has positions in Arm Holdings and Nvidia. The Motley Fool has positions in and recommends Arm Holdings, Intel, Nvidia, and Space Exploration Technologies. The Motley Fool has a disclosure policy.
Anthropic's Valuation Target Has Slipped From $2 Trillion to Under $1.5 Trillion. Here's Why was originally published by The Motley Fool
