Investors are scaling back their expectations for Anthropic's upcoming IPO following a rough week for tech stocks. The AI company had been targeting a $2 trillion valuation, but stakeholders now question whether even $1.5 trillion is achievable. One investor described that figure as a 'stretch,' reflecting growing concerns about excessive spending by AI firms and broader market volatility.
The shift in sentiment coincides with a sharp post-midterm selloff in the Nasdaq, which dropped more than 5% on Thursday, the steepest decline in 19 months. The market downturn stems from fears that Democratic gains in Washington and public skepticism toward AI could slow data center expansion. Bearish sentiment had been building before the election, with the Nasdaq experiencing its worst month since March 2025, driven by declines in chipmakers and neoclouds.
Anthropic plans to list on the Nasdaq under the ticker ANT, with its debut expected in the coming weeks. As recently as last month, the company was reportedly seeking a valuation as high as $2 trillion, though its private valuation stood at $965 billion as of May. With current market conditions, investors now anticipate a more modest valuation range of $1 trillion to $1.25 trillion, though this could change.
Gil Luria, an analyst at D.A. Davidson, emphasized the importance of a well-priced IPO for market stability. 'The market really needs this IPO to go well and the bankers on the deal surely understand that,' Luria said. 'The best way to set Anthropic up for success is to price the deal well.' The company is set to begin its roadshow next week.