U.S. tech sector faces key test with Nvidia earnings and Anthropic IPO

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Tech sector test: Nvidia & Anthropic

Highlights

Nvidia shares fell about 13% last week and are down more than 30% in six weeks, erasing roughly $2 trillion in market value.
Investors await Nvidia's earnings Tuesday and Anthropic's IPO pricing Wednesday, as critical tests of continued money flows into AI-linked tech names.
Anthropic aims for a $70–$78 IPO price range at a reduced $1.2 trillion valuation, with Thursday's Nasdaq debut seen as a sector sentiment barometer.

Two events shape the week ahead

As reported by CNBC, traders are focusing on Nvidia's earnings due Tuesday after the market close and Anthropic's expected IPO pricing on Wednesday, followed by its planned Nasdaq debut on Thursday under the ticker ANT. The two events are emerging as the next major test for whether money continues rotating within AI-linked stocks or retreats after a bruising selloff in Nvidia.

Nvidia ends the latest week down about 13%, even after concerns that the departure of co-founder and CEO Jensen Huang could trigger a much steeper decline. The broader market holds up better, with the S&P 500 technology sector rising more than 2% and snapping a five-week losing streak as investors shift into names such as Apple, Advanced Micro Devices and Broadcom.

Mark Hackett, chief market strategist at Nationwide Investment Management Group, says the Nvidia story is becoming more company-specific rather than a signal of broader weakness in tech. Investors are also looking for more detail on succession planning at Nvidia, where chief financial officer and interim CEO Colette Kress is now leading the company until a permanent successor is named.

Market participants are weighing whether Nvidia's more than 30% drop in six weeks, which erases roughly $2 trillion in market value, creates a buying opportunity. Jeff Kilburg of KKM Financial says he is buying January $200 calls, while Dan Ives of Yorkville Ives & Co keeps a 12-month price target of $225 and views the current level as attractive.

IPO demand offers sentiment check

Anthropic is also set to serve as a near-term barometer for investor appetite toward high-growth AI companies. The company is expected to market shares at $70 to $78 and, if the listing proceeds as planned, begin trading Thursday on the Nasdaq Global Select Market.

The AI laboratory has reduced its estimated valuation to about $1.2 trillion from $2 trillion earlier in the fall, a move investor Benjamin Black of Powerlaw Corp. describes as sensible given current market conditions. He argues the pricing is not excessive if the company reaches a $100 billion annualized revenue run rate by the end of 2026, which would imply a valuation of roughly 12 times ARR.

A strong Anthropic debut could reinforce the view that investors still want exposure to AI despite recent turbulence in Nvidia. A weak reception, by contrast, could signal that the sector's recovery remains fragile even as broader U.S. equity benchmarks stabilize.

We have also looked at the AI stocks selloff that hit neoclouds and chipmakers amid Nvidia leadership turmoil.

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