Anthropic IPO filing and AI financing raise stock supply worries, Cramer says
Overview
Anthropic filed its IPO prospectus on Monday, according to CNBC. CNBC's Jim Cramer says a wave of large IPOs and capital raises could drain investor money and threaten the stock market rally, noting companies have raised $148 billion through public offerings this year.
He says potential fundraising by Anthropic and OpenAI could strain an already crowded market, and that new share supply could outstrip investor demand, as it did during the dot-com bust. Cramer says the AI companies are real businesses.
In a later CNBC segment, Cramer says AI stocks' second straight day of gains, after a group of banks and Blackstone announced $63 billion in financing for Anthropic to buy Broadcom computing hardware, does not mean the data center trade is safe. He flags debt-funded neocloud companies such as CoreWeave, whose bonds have yielded as much as 15%, and warns that calmer bond markets could reverse before the Federal Reserve's rate decision on Wednesday.
Written by AI from the articles below · updated Oct 27, 7:10 PM ET
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Developments
2 developments
- Oct 27, 6:24 PM ET · 1 articleBanks and Blackstone announce $63 billion financing for Anthropic to buy Broadcom hardwareCNBC · Technology: Jim Cramer warns investors not to get fooled by AI stock rally
- Oct 26, 6:09 PM ET · 1 articleAnthropic files IPO prospectus, drawing Cramer warning on capital raisesCNBC · Technology: Jim Cramer warns IPO and capital-raising flood could drain stock market rally
Article timeline
The articles in this story. Times are ET.
- CNBC · TechnologyNewsJim Cramer warns investors not to get fooled by AI stock rally
AICNBC's Jim Cramer says the latest AI stock rally does not mean the data center trade is in the clear. He flags debt-funded neocloud companies such as CoreWeave, whose bonds have yielded as much as 15%, and questions whether Anthropic's $63 billion financing for Broadcom hardware is as reassuring as it looks. He also warns that calmer bond markets could reverse before the Federal Reserve's rate decision on Wednesday.
- CNBC · TechnologyNewsJim Cramer warns IPO and capital-raising flood could drain stock market rally
AICNBC's Jim Cramer warns that a wave of massive IPOs and capital raises could drain investor money and threaten the rally, noting companies have raised $148 billion through public offerings this year. Anthropic filed its IPO prospectus Monday, and Cramer says potential fundraising by AI leaders Anthropic and OpenAI could strain an already crowded market. He says the AI companies are real businesses, but that the supply of new shares could outstrip investor demand, as it did during the dot-com bust.
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