Anthropic IPO oversubscribed nearly six times; can AI firm become new NVIDIA amid stock crash? Experts' views
Anthropic IPO: The initial public offering (IPO) of artificial intelligence (AI) startup Anthropic has attracted strong investor demand, with the issue reportedly receiving nearly six times as many orders as the shares available. The strong response comes at a time when global AI stocks are witnessing heightened volatility, with Nvidia shares correcting more than 30% from their October peak.
Anthropic, the developer of the Claude AI chatbot, is seeking a valuation of up to $1.4 trillion through its proposed IPO, making it one of the biggest public offerings in history. The company has set an indicative price range of $70-$78 per share and is looking to raise as much as $64.4 billion through the share sale.
The strong demand for Anthropic shares has raised questions about whether the AI startup could emerge as the next Nvidia and become a major investment destination for investors seeking exposure to the artificial intelligence boom.
However, market experts believe the two companies have fundamentally different business models and should not be viewed as direct competitors. Here's what investors need to know.
Anthropic IPO has reportedly received nearly six times the demand for the shares on offer, according to a Bloomberg report. The strong subscription interest highlights investor appetite for large AI-focused companies despite the recent volatility in technology stocks.
The company and some of its existing shareholders are looking to sell 825 million shares at an indicative price range of $70-$78 apiece. At the upper end of the price band, Anthropic could command a fully diluted valuation of approximately $1.4 trillion.
The offering could raise up to $64.4 billion, making it one of the largest IPOs globally. Anthropic is also reportedly considering allocating up to 20% of the offering to retail investors.
The strong demand has also prompted bankers to indicate that existing investors could receive priority in share allocations, potentially leaving other investors with smaller allotments than anticipated.
However, the reported oversubscription figure and allocation details remain subject to change as the IPO process progresses.
Nvidia shares have witnessed a sharp correction, falling more than 30% from their October 6 record peak of $239.24. The stock closed at $173.73 on November 11, reflecting mounting investor concerns over the company's leadership transition and broader AI sector uncertainties.
The sell-off intensified following the unexpected resignation of co-founder and CEO Jensen Huang, raising questions about leadership continuity, corporate governance and the company's future strategic direction.
Concerns surrounding potential scrutiny of advanced semiconductor exports to China have also weighed on investor sentiment. Nvidia's exposure to the global AI infrastructure boom has made it one of the biggest beneficiaries of rising data-centre investments, but the recent correction has prompted investors to reassess the risks associated with highly valued AI stocks.
According to market experts, the correction also reflects broader concerns about the sustainability of massive AI-related capital expenditure, stretched valuations and the ability of companies to monetise their investments in artificial intelligence.
The decline in Nvidia shares has also encouraged investors to explore other opportunities within the AI ecosystem, with Anthropic proposed listing emerging as a major attraction.
Despite the strong investor response to Anthropic IPO, experts believe the company cannot be directly compared with Nvidia because their business models and revenue-generation structures are fundamentally different.
Anuj Gupta, SEBI Registered Research Analyst, said, "We are not expecting Anthropic to become the next Nvidia, as the two companies operate in fundamentally different business segments. Nvidia is a leader in AI hardware and semiconductors, while Anthropic focuses on foundational AI models and enterprise software."
Gupta highlighted the difference in their financial performance, pointing out that Nvidia generated revenue of $96.2 billion in Q2 2026 alone, whereas Anthropic reported revenue of $33.2 billion during the first nine months of 2026.
He further noted that Nvidia is an established and profitable market leader, while Anthropic reported an operating loss of $1.3 billion during the first nine months of 2026, amid substantial computing costs and competition from open-source AI models.
However, Gupta believes Nvidia's share price correction could create an opportunity for Anthropic to attract investors seeking continued exposure to the AI theme.
"With Nvidia shares correcting more than 30% from their October peak, institutional and retail investors looking to maintain AI exposure have a massive new target," he said.
He added that Anthropic's proposed IPO, targeting a fully diluted valuation of up to $1.41 trillion at $70-$78 per share, could attract significant investor interest, particularly with 20% of the IPO shares earmarked for retail investors.
However, Gupta cautioned that investors should evaluate Anthropic based on its own business fundamentals, growth prospects, profitability roadmap and ability to manage substantial computing investments rather than viewing it as a direct replacement for Nvidia.
Vested also highlighted the fundamental differences between the two companies, noting that Nvidia provides the computing infrastructure that powers AI development, whereas Anthropic develops AI models and commercial applications.
According to brokerage firm Vested, Anthropic has significant growth potential following its listing as enterprise adoption of AI accelerates. However, its long-term success will depend on how effectively it converts demand into recurring revenue, improves profitability and manages the substantial computing costs associated with developing advanced AI models.
Vested further advised investors to evaluate both companies independently, particularly in terms of their valuations, competitive advantages and ability to generate cash.
It added that the AI opportunity is unlikely to be restricted to a single company. As the industry matures, value creation could increasingly extend beyond chipmakers and infrastructure providers to companies developing commercially viable AI applications.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
Get Latest real-time updates
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
HomeMarketsStock MarketsAnthropic IPO oversubscribed nearly six times; can AI firm become new NVIDIA amid stock crash? Experts' views
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.