Anthropic valuation surge fuels Wedbush view of broader AI market upside

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Anthropic valuation fuels AI market

Highlights

Anthropic reached a $965 billion valuation after raising $65 billion, signaling early-stage momentum for the broader AI investment cycle, according to Wedbush's Ives.
SpaceX is targeting a $1.75 trillion Nasdaq IPO on June 12, which could become the largest float in history, with IPOs from OpenAI and Anthropic also planned for later in 2024.
Despite optimism from Ives, some analysts warn the surge of mega IPOs may signal a market peak reminiscent of the dot-com bubble, as none of the three companies are currently profitable.

AI funding momentum and market thesis

As reported by CNBC, Ives said on Friday that Anthropic's latest valuation of $965 billion, after securing $65 billion in funding on Thursday, represents only an early stage of the broader AI investment cycle. Speaking on CNBC's “Squawk Box Europe,” he said investors should increasingly focus on data layer companies including Snowflake, Datadog and InnoData, arguing that spending patterns are already emerging through second- and later-order beneficiaries.

Ives said that, for the first time in 30 years, the U.S. is ahead of China in technology. He linked that view to what he called a historic period ahead for Wall Street, with a pipeline of major 2026 IPOs that could include SpaceX, Anthropic and OpenAI.

He described those companies as three pillars of the fourth industrial revolution and said Anthropic currently has the best model in the market. He also said Anthropic's position is likely to increase pressure on OpenAI, which he called foundational to the AI revolution.

IPO pipeline raises optimism and caution

Not all market strategists share Ives' bullish stance on the coming wave of listings. Some analysts warn that a cluster of outsized public offerings could signal a market peak and draw comparisons with the late-1990s dot-com bubble.

CNBC said SpaceX's expected June 12 IPO, which was confirmed in a regulatory filing on Thursday, could become the largest float in history, with Elon Musk's company targeting a $1.75 trillion valuation on the Nasdaq. OpenAI and Anthropic have also announced plans to go public later this year, although all three companies have yet to generate annual profit.

Anthropic is expected to post its first profitable quarter in upcoming earnings. John Blank, chief equity strategist at Zacks, told CNBC's “Squawk Box Europe” on Thursday that he sees the rush of giant IPOs as a sign that the market top is near, while Ives maintains that current conditions resemble 1997 rather than 1999 in terms of bubble risk.

Our earlier article covered Anthropic’s $65 billion Series H raise, which lifted its post-money valuation to $965 billion as the company scales computing capacity for its Claude model and broader product lineup. We also noted that the jump in valuation has sharpened the competitive pressure on OpenAI and comes as both AI leaders weigh potential public listings to secure the capital needed for chips, cloud infrastructure, and next-generation model training.

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