News & Updates
The latest news and updates from companies in the WLTH portfolio.
With smooth SpaceX debut, Wall Street sets new template for mega IPOs By Reuters
By Anirban Sen, Nivedita Balu and Saeed Azhar NEW YORK, June 12 (Reuters) - A collective sigh of relief swept across Wall Street after trading for SpaceX's landmark Nasdaq launch went smoothly, setting a new template for the trading firms and exchanges that are bracing for the giant IPOs of OpenAI and Anthropic later this year. SpaceX's record-breaking debut on Friday dwarfed the previous largest flotation on U.S. exchanges by nearly three times. The sheer size of the launch had worried market participants who had lingering bad memories from the disastrous stock market debut of Facebook in 2012. However, trading systems at the banks underwriting the IPO, exchanges, market makers, clearinghouses, and other market infrastructure firms held up to the challenge of processing millions of client orders. "People go back to the Facebook ... days and 'was this going to turn into one of those companies,' but I honestly think the banks in the U.S. did a fantastic job, the SpaceX crew did a fantastic job telling the story when they did their rounds. And as you can see it went extremely smoothly," said Jeff Parks, CEO of Canadian investment firm Stack Capital Group. Nearly a third of Stack's portfolio is SpaceX, in which the company began investing in 2021. He was referring to the turbulence that surrounded Facebook's ill-fated IPO, when technical problems turned a landmark listing into one of Wall Street's most notorious trading fiascos. It left investors and brokers in limbo for hours and ultimately cost market makers hundreds of millions of dollars. According to Citadel Securities, the largest U.S. retail market maker, SpaceX's debut generated the highest retail order activity for an IPO auction ever. A Citadel Securities spokesperson said the firm handled the majority of the retail orders for SpaceX. Morgan Stanley, the so-called "stabilization agent" for the glitzy market debut, had the key role in managing SpaceX's market opening. The bank had to ensure an orderly rollout even as it grappled with unprecedented investor demand. A stabilization agent typically buys up shares in the open market to shore up stocks that witness steep declines on opening day. One of the lead underwriters advising SpaceX, who requested anonymity as the matter is confidential, said the IPO was a monumental event for the exchanges and the banks and crucial to get right. Trading platform Charles Schwab said it has seen well over a million orders in SpaceX in the first few hours of trading, which is a significant figure in comparison to past IPOs, according to a spokesperson for the company. Reuters reported on Thursday that Wall Street traders, brokers and exchanges had been stress-testing their trading systems for several weeks leading up to the blockbuster IPO. SpaceX shares "are not going up in huge blocks, but they're bleeding higher, and a lot of that is due to a little bit more of a boring and softer opening print than a lot of folks expected," said Mike Dickson, head of research & quantitative strategies at Horizon Investments. "I'm a little surprised there's not more volatility, given a lot of the oversubscription headlines." SMOOTH ROLLOUT Past trading debuts for large IPOs have often faced delays because exchanges must match enormous volumes of buy and sell orders before determining an opening price. For SpaceX, the stock started trading shortly before noon on Friday. That was relatively early compared to the recent IPOs of Cerebras Systems and Quantinuum, which opened later in the afternoon on their respective debut days. Barring some issues with early trading on Robinhood on Friday, Wall Street largely skirted the technical glitches that hampered Facebook's rollout in 2012 - much to the relief of Nasdaq, the market makers, and investors. "We all worked really well together. We did a lot of preparation with our banking partners," said Nasdaq CEO Adena Friedman in an interview with CNBC on Friday. "We made sure that we were talking to all of the firms throughout the process of preparing for this, and it came off really flawlessly."
SpaceX Stock Price Prediction: Veteran Warns of a Crash, Compares it to Enron | BanklessTimes
Jim Chanos is warning about the company and its lofty valuation. SpaceX stock price jumped by nearly 20% after its much-anticipated initial public offering, which pushed its valuation to over $2 trillion. It has now become the 7th biggest company in the world after Nvidia, Alphabet, Apple, Microsoft, Amazon, and TSMC. Still, despite the surge, one analyst is warning of an imminent crash. Jim Chanos Warns of SpaceX Stock In a Bloomberg interview, Jim Chanos, a veteran short seller who warned of Enron, sent a blistering warning to investors. He warned that the IPO and the company's valuation reminded him of the Enron era. For starters, Enron was one of the biggest energy trading companies in the United States. It collapsed in early 2000s after it was caught engaging in accounting manipulation. Chanos was one of the top short sellers who warned of the company's risks. Chanos identified two main risks. First, he believes that the company will ultimately engage in massive equity raises, which may lead to dilution among investors. Second, there are concerns about the company's valuation. Its recently released earnings showed that the company made over $18 billion in revenue last year, while losing nearly $5 billion. These losses came mostly from the xAI part of the business, which is burning substantial sums of money. In contrast, Broadcom, which is valued at $1.8 trillion, made $63 billion in revenue last year, and analysts expect that it will make $106 billion and $170 billion this year and in 2027. Similarly, Taiwan Semiconductor, which is valued at the same level as SpaceX, is expected to make $175 billion and $221 billion in the next two years. TSMC has a net profit margin of 45%. Jim Chanos is not the only one warning on the SpaceX stock. In an interview, Nick Colas, the co-founder of Data Take Research, warned that the simple math don't add up to any rational measures of value. He warned that the IPO calculus was simply based on math. Bradley Tusk, another top analyst, believes that it would be crazy to buy shares, pointing to the lofty valuation. Still, some analysts believe that the company is a bargain, pointing to its large addressable markets. For example, its space solutions has a TAM of $370 billion, while starlink broadband, mobile, AI infrastructure, consumer subscriptions, digital advertising, and enterprise applications are worth over $23 trillion. Most IPOs Pop and then Crash The other main risk facing the SpaceX stock price is that many IPOs tend to jump and then crash after that. Indeed, data shows that 91% of them follow this script. In SpaceX's case, the 19% jump was not all that big. For example, Cerebras, a top chipmaker, its stock nearly doubled on day one. Today, it has crashed by over 50%. Similarly, Circle stock more than doubled on day one, and today, it remains much lower than its peak. Just look at all of the recent IPOs, including companies like Figma, Medline, Wealthfront, Venture Global. Chime Financial, and Klarna. Therefore, while SpaceX is a good company, the most likely scenario is where it crashes in the coming months, and then starts to rebound later once it demonstrates revenue growth and profitability.
Opinion: SpaceX Stock Will Initially Soar, but Its Smoke-and-Mirror Optics Won't Last Beyond 2 Months
The most anticipated event of the year is now just two days away. On June 12, Elon Musk's SpaceX will go public and shatter the previous record for the largest-ever initial public offering (IPO). The Nasdaq Composite (NASDAQINDEX: ^IXIC), Nasdaq-100, and S&P 500 (SNPINDEX: ^GSPC) have soared ahead of SpaceX's debut. This nearly $1.8 trillion company combines two of Wall Street's hottest trends (artificial intelligence (AI) and the space economy) with a CEO (Musk) who successfully turned Tesla into a trillion-dollar business. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " But the impending SpaceX IPO is historic in more ways than one. Longstanding index inclusion criteria were rewritten ahead of this monumental debut -- and these changes are sending ripples through Wall Street. Image source: Getty Images. While new structural dynamics have created an environment that can artificially prop up SpaceX's stock in the weeks after its June 12 IPO, these smoke-and-mirror optics should lead to an epic collapse by August, or perhaps even sooner. Rules were rewritten ahead of the SpaceX IPO, which should help shares initially soar Arguably, the most notable changes we've witnessed ahead of SpaceX's imminent debut are the criteria for index inclusion. Several safeguards that oversight committees put in place have been torn down to make way for Musk's other trillion-dollar company. For example, Nasdaq (NASDAQ: NDAQ) Global Indexes made several changes to its Nasdaq-100 methodology. The minimum 10% float requirement -- float represents the number of tradable shares of a security -- was shelved for the Nasdaq-100, and the timeline for inclusion was lowered from around three months to just 15 trading sessions for non-financial companies that would rank among the 40 largest in the index. Accounting for the Juneteenth and Independence Day holidays on Wall Street, SpaceX can enter the Nasdaq-100 on July 7. The U.S. Russell Equity Index Series also made notable changes to its inclusion criteria. For the last 22 years, the Russell U.S. Indexes have added IPOs on a quarterly basis. Ahead of the SpaceX IPO, this timeline has been shortened to just five trading days. Even select brand-name brokers have altered long-standing policies for the SpaceX IPO. Traditionally, Fidelity has required clients to have $500,000 in their accounts to participate in IPOs. For SpaceX, Fidelity slashed the capital requirement to (drum roll) just $2,000! The methodology changes for the Nasdaq-100 and U.S. Russell Equity Index Series will force funds that attempt to mirror these indexes to purchase SpaceX stock for several weeks after its debut. But index fund and retail investor demand are only part of the story. SpaceX is selling approximately 555.6 million shares at $135, raising the aforementioned $75 billion. But these 555.6 million shares represent a little over 4% of its outstanding shares. Most IPO's typically sell 10% to 20% of their outstanding shares. Index funds will gobble up a sizable portion of this historically low float, providing an artificially high floor for SpaceX shares in the weeks following its June 12 debut. Image source: Getty Images. The SpaceX rug pull is coming, and retail investors will be left holding the bag But thanks to another unconventional aspect of the SpaceX IPO, these smoke-and-mirror optics can only last so long. A 180-day lockup period is customary for a newly public company. The lockup period, which begins the day a company debuts, disallows insiders (high-ranking executives, board members, and select early investors) from selling their shares. SpaceX has thrown historical customs out the window. In addition to setting its $135/share IPO price before its roadshow even began, the company outlined a staggered lockup period, somewhat similar to what Cerebras Systems did with its recent public debut. Though Elon Musk won't be able to sell any shares for 366 calendar days, other insiders will have several unlock milestones to dump their holdings. The first comes on the second trading day after the company's first quarterly report as a public company (in August). If SpaceX's stock is more than 30% above its IPO price, an additional share unlock is achieved. Several other time-based milestones exist at calendar days 70, 90, 105, 120, 135, and 180 post IPO for shares to unlock. Once insiders have the green light to begin selling shares, you're going to witness the greatest wealth transfer from retail investors to company insiders in history. SpaceX's artificially propped-up share price, caused by rule changes and forced fund purchases, will quickly weaken as new shares become available from insiders. The company's first quarterly report as a public company in August will also serve as a reminder to investors of just how expensive and unproven Musk's space and AI company is. Many of SpaceX's operating segments require significant capital, and most are losing a lot of money. Looking beyond the company's touted adjusted EBITDA reveals a net loss of $4.9 billion last year. SpaceX's valuation of $1.77 trillion also equates to a price-to-sales (P/S) ratio of approximately 95, compared to full-year revenue in 2025. For context, no public company at the forefront of a next-big-thing trend (let alone two hot trends, AI and the space economy) has ever sustained a P/S ratio above 30 over the long term. Structural changes that initially force the purchase of SpaceX stock and limit its float can pump up its shares over the first few weeks. But these smoke-and-mirror dynamics are likely to give way to a steep sell-off thereafter as insiders cash out and SpaceX's generally disappointing operating results come into focus. Should you buy stock in NASDAQ Composite Index right now? Before you buy stock in NASDAQ Composite Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and NASDAQ Composite Index wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,280,566!* Now, it's worth noting Stock Advisor's total average return is 948% -- a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of June 10, 2026. Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Apple, SUNation Energy, Tango Therapeutics, Applied Digital And Cerebras Systems: Why These 5 Stocks Are
Major U.S. stock indexes finished Monday on a mixed note. The Dow Jones Industrial Average slipped 0.16% to 50,786.01, while the S&P 500 gained 0.30% to close at 7,405.73 and the Nasdaq advanced 0.86% to 25,929.66. These are the top stocks that gained the attention of retail traders and investors through the day: Apple Inc. (NASDAQ:AAPL) Apple's stock closed down 1.89% at $301.54, with an intraday high of $317.40 and a low of $301.17. The 52-week range is $195.07 to $317.40. The event marked a leadership milestone as CEO Tim Cook delivered his final WWDC keynote before his planned September departure. Apple said new AI capabilities would enable Siri to summarize information, analyze images and assist with writing tasks, while some advanced features would be subject to usage limits tied to select iCloud+ subscriptions. SUNation Energy (NASDAQ:SUNE) SUNation Energy shares skyrocketed by 420.35%, closing at $5.88. The stock hit an intraday high of $9.45 and a low of $2.18, with a 52-week high of $9.45 and a low of $0.68. The shares fell 8.49% to $5.38 in the after-hours trading. The surge follows a reverse merger agreement with Suniva, aiming to create a larger U.S.-focused solar platform. This merger is expected to combine solar manufacturing and installation businesses, enhancing SUNation's market presence. Tango Therapeutics Inc. (NASDAQ:TNGX) Tango Therapeutics saw a 52.97% increase, closing at $30.93. The stock's intraday high was $32.50, with a low of $26.08, and a 52-week range of $3.77 to $32.50. The company reported promising trial results for its pancreatic cancer treatment, showing a 90% progression-free survival rate at six months. This development could significantly change treatment protocols for this aggressive disease. Applied Digital Corporation (NASDAQ:APLD) Applied Digital's shares rose by 3.34%, closing at $40.95. The stock's intraday high was $41.43, with a low of $39.27, and a 52-week range of $9.02 to $50.70. In extended trading, the stock rose 8.71% to $44.51. The company announced a new long-term lease agreement with a U.S.-based hyperscaler, potentially generating up to $12.7 billion in revenue over 30 years. This agreement marks the company's fifth AI campus. Cerebras Systems (NASDAQ:CBRS) Cerebras Systems experienced an 18.32% increase, closing at $237.83. The stock reached an intraday high of $249.76 and a low of $196.73, with a 52-week range of $196.73 to $385. In the after-hours trading, the stock gained 1.14% to $240.54. Analysts also pointed to major growth opportunities from Cerebras' more than $20 billion compute agreement with OpenAI, announced in January 2026, and its partnership with Amazon Web Services on AI inference technology. They said broader adoption of Cerebras' systems by major customers could significantly boost the company's long-term revenue outlook. Benzinga Edge Stock Rankings indicate Apple Stock has a Momentum score in the 82nd percentile and a Value score in the 4th percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo Courtesy: Digineer Station on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.
Cerebras shares climb as Wall Street brokerages back AI chip strategy
June 8 (Reuters) - Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company (CBRS.O), opens new tab rose 5.5% in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia (NVDA.O), opens new tab, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com (AMZN.O), opens new tab and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank (9984.T), opens new tab. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq (.IXIC), opens new tab more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index (.SOX), opens new tab is up 60% this quarter, on track for its biggest quarterly gain since January 2000. Reporting by Johann M Cherian in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab
Cerebras shares climb as Wall Street brokerages back AI chip strategy
June 8 (Reuters) - Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5% in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60% this quarter, on track for its biggest quarterly gain since January 2000. (Reporting by Johann M Cherian in Bengaluru; Editing by Vijay Kishore)
Cerebras shares climb as Wall Street brokerages back AI chip strategy
June 8 (Reuters) - Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5% in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60% this quarter, on track for its biggest quarterly gain since January 2000. (Reporting by Johann M Cherian in Bengaluru; Editing by Vijay Kishore)
Cerebras shares climb as Wall Street brokerages back AI chip strategy By Reuters
June 8 (Reuters) - Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5% in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60% this quarter, on track for its biggest quarterly gain since January 2000.
Cerebras shares climb as Wall Street brokerages back AI chip strategy
June 8 (Reuters) - Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5% in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60% this quarter, on track for its biggest quarterly gain since January 2000. (Reporting by Johann M Cherian in Bengaluru; Editing by Vijay Kishore)
Cerebras shares climb as Wall Street brokerages back AI chip strategy
Cerebras shares saw a rise on Monday. Several Wall Street firms initiated coverage with positive outlooks. They are backing the chip designer's unique AI strategy. This comes after a strong debut. Morgan Stanley and Citigroup are among the firms. They see substantial upside potential for Cerebras. The company designs large chips to speed up AI processing. Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5% in premarket trading, with at least nine brokerages - including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS - initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia , that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon. com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60% this quarter, on track for its biggest quarterly gain since January 2000.
Cerebras shares climb as Wall Street brokerages back AI chip strategy
June 8 : Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5 per cent in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70 per cent above its initial public offering price of $185. However, its shares have since lost about 36 per cent, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60 per cent this quarter, on track for its biggest quarterly gain since January 2000.
How to Buy SpaceX Stock on Its IPO Day
After years of speculation about an initial public offering (IPO), SpaceX shares are expected to start trading on the Nasdaq stock exchange on June 12. Projections foresee it raising $75 billion, making it the largest IPO of all time. Before the big day arrives, there are a few tidbits of information to look at that can help any investor who wants to buy shares start setting up their game plan. That includes details of everything from who can invest at the IPO price to which types of orders can be placed to a way to gain exposure to SpaceX without directly investing. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " Image source: Getty Images. Understanding the SpaceX IPO price For the SpaceX IPO, there will be two prices investors will hear about. The IPO price is the price at which a company sells shares to select investors and institutions, while the public typically can only buy shares when it publicly debuts, and the stock will likely launch with a different price on its first trading day. For instance, Cerebras Systems, a rival to Nvidia, had its own recent high-profile public offering. Its IPO was priced at $185, but shares began trading to the public at $350 per share. According to Barron's, five online brokers are offering customers the opportunity to buy shares at the SpaceX IPO price, which is $135 right now: RobinHood Markets, SoFi Technologies, Charles Schwab, Fidelity, and E*TRADE from Morgan Stanley. There are, however, different rules for qualifying to buy shares at that IPO price based on the brokerage, and it isn't guaranteed that investors who place an order at that price will get all the shares they want or, for that matter, any at all. Buying shares on the day the stock goes public If you are planning to invest on the day the company goes public, the most direct way is to use an online broker, search for the ticker SPCX, and place an order. Investors can choose a market order to buy shares and own SpaceX stock immediately. Another strategy is to set a limit order, which buys shares at a specific price if it is reached. The main benefit of the market order is immediacy and locking in those shares, while a limit order gives more potential control over the price. With a limit order, however, the risk is that it never reaches the target price and is eventually canceled. Gaining exposure but limiting risk "The increasing number of commercial space launches and the upward trend in upmass [measured in kilograms] serve as unmistakable signs of space industry growth. Space is a high-risk, high-reward industry, however," according to a research report from The Motley Fool. For risk-averse investors looking to avoid the volatility of holding SpaceX directly, exchange-traded funds (ETFs) that will own shares of it -- along with other equities -- are an investment vehicle to consider. One that will immediately give you exposure to SpaceX is the Tema Space Innovators ETF (NYSEMKT: NASA). It already owns shares of SpaceX through a special-purpose vehicle (SPV), and those shares are subject to a lockup period of at least six months. After that lockup period is over, those shares will convert to freely traded shares. As of May 29, this ETF's SpaceX shares were valued at over $171 million, and it may also buy SpaceX stock after the company goes public. The benefit of this ETF for investors who want to own a piece of SpaceX but are worried about risk is that it isn't solely reliant on SpaceX for its success. As of June 1, its SpaceX SPV exposure was tied with the space exploration company Intuitive Machines as its third-largest holding, with each having a portfolio weight of 6.5%. Its top holding was rocket launch company Rocket Lab (11% portfolio weight), followed by aerospace imagery company Planet Labs PBC (6.6% portfolio weight). Ready to invest in the SpaceX IPO? No matter what path you want to take, investors ready to put their money into SpaceX would be well served by having their game plan in place before IPO day. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 941%* -- a market-crushing outperformance compared to 206% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks " *Stock Advisor returns as of June 8, 2026. Charles Schwab is an advertising partner of Motley Fool Money. Jack Delaney has positions in SoFi Technologies. The Motley Fool has positions in and recommends Intuitive Machines, Nvidia, Planet Labs PBC, and Rocket Lab. The Motley Fool recommends Charles Schwab and Nasdaq and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
How to Buy SpaceX Stock on Its IPO Day
After years of speculation about an initial public offering (IPO), SpaceX shares are expected to start trading on the Nasdaq stock exchange on June 12. Projections foresee it raising $75 billion, making it the largest IPO of all time. Before the big day arrives, there are a few tidbits of information to look at that can help any investor who wants to buy shares start setting up their game plan. That includes details of everything from who can invest at the IPO price to which types of orders can be placed to a way to gain exposure to SpaceX without directly investing. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " Understanding the SpaceX IPO price For the SpaceX IPO, there will be two prices investors will hear about. The IPO price is the price at which a company sells shares to select investors and institutions, while the public typically can only buy shares when it publicly debuts, and the stock will likely launch with a different price on its first trading day. For instance, Cerebras Systems, a rival to Nvidia, had its own recent high-profile public offering. Its IPO was priced at $185, but shares began trading to the public at $350 per share. According to Barron's, five online brokers are offering customers the opportunity to buy shares at the SpaceX IPO price, which is $135 right now: RobinHood Markets, SoFi Technologies, Charles Schwab, Fidelity, and E*TRADE from Morgan Stanley. There are, however, different rules for qualifying to buy shares at that IPO price based on the brokerage, and it isn't guaranteed that investors who place an order at that price will get all the shares they want or, for that matter, any at all. Buying shares on the day the stock goes public If you are planning to invest on the day the company goes public, the most direct way is to use an online broker, search for the ticker SPCX, and place an order. Investors can choose a market order to buy shares and own SpaceX stock immediately. Another strategy is to set a limit order, which buys shares at a specific price if it is reached. The main benefit of the market order is immediacy and locking in those shares, while a limit order gives more potential control over the price. With a limit order, however, the risk is that it never reaches the target price and is eventually canceled. Gaining exposure but limiting risk "The increasing number of commercial space launches and the upward trend in upmass [measured in kilograms] serve as unmistakable signs of space industry growth. Space is a high-risk, high-reward industry, however," according to a research report from The Motley Fool.
Cerebras shares climb as Wall Street brokerages back AI chip strategy
June 8 (Reuters) - Cerebras shares gained on Monday as multiple Wall Street firms initiated coverage with bullish calls after the quiet period, backing the chip designer's unconventional AI strategy more than three weeks after its strong debut. Shares of the company rose 5.5% in premarket trading, with at least nine brokerages -- including IPO bookrunners Morgan Stanley, Citigroup, Barclays and UBS -- initiating coverage of the stock. The California-based firm designs wafer-scale engine chips roughly the size of a dinner plate to speed up processing, challenging traditional GPU-based systems, like those of Nvidia, that rely on clusters of interconnected chips. "As AI workloads become increasingly reasoning-intensive, demand for fast, low-latency inference is growing rapidly," said Morgan Stanley analysts led by Joseph Moore, who rate the stock "overweight". "This is a unique chance to invest in an AI processor company with a first-mover advantage against Nvidia, and offers substantial upside as the category evolves." Citigroup expects Cerebras' shares to hit $340 in the next 12 months, according to LSEG-compiled data. IPO underwriters can publish research on a stock 25 days after listing. Cerebras counts Amazon.com and Sam Altman's OpenAI as customers and is also backed by the ChatGPT maker and Japanese investment giant SoftBank. The latter reportedly sought to take the chip designer private before its debut. Cerebras debuted on the tech-heavy Nasdaq more than three weeks ago and closed about 70% above its initial public offering price of $185. However, its shares have since lost about 36%, as of last close, on concerns the global tech rally had run too far, while investors also priced in hawkish Federal Reserve monetary policy for the rest of the year amid the Middle East conflict. The Philadelphia SE Semiconductor Index is up 60% this quarter, on track for its biggest quarterly gain since January 2000. (Reporting by Johann M Cherian in Bengaluru; Editing by Vijay Kishore)
Is Musk's SpaceX set to blow up on the launch pad?
The upcoming listing of Elon Musk's SpaceX is shaping up as this year's blockbuster event for financial markets. SpaceX plans to sell roughly 500 million shares at a price of $135, making it the largest IPO in history and valuing the company at roughly $1.8 trillion. Musk's own stake alone stands at over $600 billion. Fund managers are clamouring for a piece, and Musk fans are drooling. But before you reach for your wallet, there are a few things worth knowing. The company lost $4.9 billion in 2025, with its primary revenue streams coming from its Starlink satellite internet service. Musk plans to use funds raised through the offering to further develop his Starship rocket business and expand xAI's data centres. SpaceX has a monopoly on the low-Earth orbit launch industry, operates roughly three-quarters of the satellites in orbit, and has improved the cost of launching satellites by powers of ten. It is worth noting that the company's biggest revenue driver is not its celebrated rocket systems, but rather the rental of its Nvidia chips to Anthropic. There is no denying what it does is extremely cool. But it is my view that the SpaceX IPO is a classic case of the story getting ahead of the fundamentals, and the numbers are out-of-this-world. SpaceX claims a total addressable market of $28.5 trillion, equivalent to the entire GDP of the United States, a slippery figure that encompasses the financial opportunities in the 'lunar economy', space data centres, energy production on the moon, asteroid mining, and logistics to Mars. At its current valuation, the company would trade at over 100 times sales. For context, Google went public at only ten times sales, and Nvidia, a massively profitable company, currently trades at 21 times sales. There is no price-to-earnings ratio to speak of, a standard measurement for company valuations, for the simple reason that there are no earnings. Some analysts have valued SpaceX at roughly half its asking price, warning that the future promise of its untested technologies and Grok AI potential remain unclear. The Financial Times has gone further, describing it as the 'Enshittification of the Stock Market'. It is also expected that SpaceX will eventually merge with Musk's Tesla, a prospect that adds yet another layer of uncertainty to the valuation. The red flags do not stop there. The company plans to sell 30 per cent of its shares to retail investors, well above the industry average of 10 per cent. The cynic in me would suggest this is because retail investors are considered less sophisticated and more likely to be 'believers' in the story over the numbers. And if the prospectus, full of glossy photos of rockets and the company's stated mission to 'extend the light of consciousness to the stars', did not ring alarm bells, a glance at the material risks listed on page 26 should do the trick. The prospectus cites Musk himself as a primary risk factor to the company's future performance. His polarising public behaviour has been shown to dramatically impact the share prices of the companies he runs, a phenomenon known as the 'Musk effect'. It also lists the risk of satellite collisions and major debris events, known as 'Kessler syndrome', which could cripple the Starlink business entirely. And none of the satellites or rockets are insured. The historical pattern with IPOs is a guide: while history doesn't repeat, it does rhyme. Analysis has shown that while listings often rise on their debut day, they go on to underperform the market over the following three months. Cerebras, another recent AI-themed listing, has already plummeted 50 per cent from its peak since debuting just a fortnight ago. Guzman Y Gomez, now down 40 per cent from its much-hyped ASX listing two years ago, serves as a painful reminder, even if it operates in a very different sector. For many, initial public offerings are increasingly regarded as the 'last gasp' of capitalism: when the rivers of gold from the private sector run dry, public markets are used as exit liquidity. 'We think the company has been significantly overvalued and investors will have opportunities to buy the stock at more attractive levels after the IPO,' says Nicolas Owens, equity analyst at Morningstar. Do not get me wrong. I am a genuine admirer of Elon Musk. He is one of the few true visionaries left who can tap into our collective imagination and love of science fiction. But there is a time and a place for Elon's sci-fi wonder, and investing in SpaceX at these prices, in my view, might not be the right time, place, or even dimension for it. IPOs like this attract enormous headlines and fanfare, especially when the company is a household name, but investors need to remember that sound investing is one small step at a time, not a giant leap for mankind.
Cerebras Opened at $350 -- Nearly Double Its IPO Price -- Then Pulled Back 20% the Next Day. Is Cerebras Stock a Buy or a Trap?
For investors looking for ways to invest in semiconductor stocks outside of the usual suspects, last month offered an opportunity with the Cerebras Systems (NASDAQ: CBRS) initial public offering (IPO). With its giant chips, it's taking a differentiated approach from traditional semiconductor companies, like Nvidia. Its IPO was priced at $185, with shares opening to the public on May 14 at $350. Shares fell 20% by the next day, which isn't surprising given the momentum trap associated with IPO investing. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " The risks of chasing IPO excitement IPOs are enticing because they feel like a ground-floor opportunity, so it's easy to be lured in by the excitement. Cerebras specifically generated a lot of interest because it is an artificial intelligence (AI) play taking a different approach to chipmaking, as mentioned earlier. Instead of relying on clusters of smaller semiconductors, Cerebras makes giant chips that are known for their speed. "For many workloads, Cerebras is up to 15 times faster than leading GPU-based solutions as benchmarked on leading open-source models," the company said in its IPO filing. Its approach won it a multiyear contract with OpenAI valued at $20 billion, and has led to partnerships with Amazon Web Services and Meta Platforms. That approach is also driving rapid revenue growth, which has skyrocketed from more than $24 million in 2022 to $510 million in 2025. Adding to the excitement is when a company prices above its IPO range, indicating heavy demand and making retail investors feel they were buying into positive momentum. That's what happened with Cerebras: It priced its IPO in a range between $115 and $125 on May 4, bumped that up to a range of $150 to $160, and ultimately exceeded expectations further by finalizing the IPO pricing at $185 per share. Put all that together, and investors can feel pressure to buy shares, not wanting to risk missing out on what could potentially be the next big thing. But when an investor doesn't know much about a company and its associated risks, they can also be susceptible to selling when the excitement fades. Image source: Getty Images. That potential scenario may be playing out for some right now, with the stock price facing a continued sell-off. On June 5, shares closed at $201, a loss of more than 42% from the May 14 opening price of $350. Is this a buy-the-dip opportunity? There's long-term potential here, but there's also no need to rush out and buy shares. Cerebras currently depends on a limited customer base for a large chunk of its revenue, has a history of losses, and still needs to invest heavily to grow the company. This is a stock I'd be comfortable watching from the sidelines, monitoring its progress over the next few quarters. Should you buy stock in Cerebras Systems right now? Before you buy stock in Cerebras Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Cerebras Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,258,838!* Now, it's worth noting Stock Advisor's total average return is 941% -- a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of June 6, 2026. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Cerebras Opened at $350 -- Nearly Double Its IPO Price -- Then Pulled Back 20% the Next Day. Is Cerebras Stock a Buy or a Trap?
For investors looking for ways to invest in semiconductor stocks outside of the usual suspects, last month offered an opportunity with the Cerebras Systems (CBRS 6.68%) initial public offering (IPO). With its giant chips, it's taking a differentiated approach from traditional semiconductor companies, like Nvidia. Its IPO was priced at $185, with shares opening to the public on May 14 at $350. Shares fell 20% by the next day, which isn't surprising given the momentum trap associated with IPO investing. The risks of chasing IPO excitement IPOs are enticing because they feel like a ground-floor opportunity, so it's easy to be lured in by the excitement. Cerebras specifically generated a lot of interest because it is an artificial intelligence (AI) play taking a different approach to chipmaking, as mentioned earlier. Instead of relying on clusters of smaller semiconductors, Cerebras makes giant chips that are known for their speed. "For many workloads, Cerebras is up to 15 times faster than leading GPU-based solutions as benchmarked on leading open-source models," the company said in its IPO filing. Its approach won it a multiyear contract with OpenAI valued at $20 billion, and has led to partnerships with Amazon Web Services and Meta Platforms. That approach is also driving rapid revenue growth, which has skyrocketed from more than $24 million in 2022 to $510 million in 2025. Adding to the excitement is when a company prices above its IPO range, indicating heavy demand and making retail investors feel they were buying into positive momentum. That's what happened with Cerebras: It priced its IPO in a range between $115 and $125 on May 4, bumped that up to a range of $150 to $160, and ultimately exceeded expectations further by finalizing the IPO pricing at $185 per share. Put all that together, and investors can feel pressure to buy shares, not wanting to risk missing out on what could potentially be the next big thing. But when an investor doesn't know much about a company and its associated risks, they can also be susceptible to selling when the excitement fades. That potential scenario may be playing out for some right now, with the stock price facing a continued sell-off. On June 5, shares closed at $201, a loss of more than 42% from the May 14 opening price of $350. Is this a buy-the-dip opportunity? There's long-term potential here, but there's also no need to rush out and buy shares. Cerebras currently depends on a limited customer base for a large chunk of its revenue, has a history of losses, and still needs to invest heavily to grow the company. This is a stock I'd be comfortable watching from the sidelines, monitoring its progress over the next few quarters.
Cerebras Opened at $350 -- Nearly Double Its IPO Price -- Then Pulled Back 20% the Next Day. Is Cerebras Stock a Buy or a Trap?
For investors looking for ways to invest in semiconductor stocks outside of the usual suspects, last month offered an opportunity with the Cerebras Systems (NASDAQ: CBRS) initial public offering (IPO). With its giant chips, it's taking a differentiated approach from traditional semiconductor companies, like Nvidia. Its IPO was priced at $185, with shares opening to the public on May 14 at $350. Shares fell 20% by the next day, which isn't surprising given the momentum trap associated with IPO investing. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " The risks of chasing IPO excitement IPOs are enticing because they feel like a ground-floor opportunity, so it's easy to be lured in by the excitement. Cerebras specifically generated a lot of interest because it is an artificial intelligence (AI) play taking a different approach to chipmaking, as mentioned earlier. Instead of relying on clusters of smaller semiconductors, Cerebras makes giant chips that are known for their speed. "For many workloads, Cerebras is up to 15 times faster than leading GPU-based solutions as benchmarked on leading open-source models," the company said in its IPO filing. Its approach won it a multiyear contract with OpenAI valued at $20 billion, and has led to partnerships with Amazon Web Services and Meta Platforms. That approach is also driving rapid revenue growth, which has skyrocketed from more than $24 million in 2022 to $510 million in 2025. Adding to the excitement is when a company prices above its IPO range, indicating heavy demand and making retail investors feel they were buying into positive momentum. That's what happened with Cerebras: It priced its IPO in a range between $115 and $125 on May 4, bumped that up to a range of $150 to $160, and ultimately exceeded expectations further by finalizing the IPO pricing at $185 per share. Put all that together, and investors can feel pressure to buy shares, not wanting to risk missing out on what could potentially be the next big thing. But when an investor doesn't know much about a company and its associated risks, they can also be susceptible to selling when the excitement fades. That potential scenario may be playing out for some right now, with the stock price facing a continued sell-off. On June 5, shares closed at $201, a loss of more than 42% from the May 14 opening price of $350.
Anthropic's Valuation Just Hit $965 Billion. These 2 Magnificent AI Stocks Are the Real Winners
Anthropic just became the latest artificial intelligence (AI) giant to announce an upcoming initial public offering. The AI lab joins Cerebras Systems, which launched last month, and SpaceX, which is aiming for a June 12 market debut. Anthropic hasn't yet decided on a potential date or other specifics; instead, it started the process by filing confidentially with the Securities and Exchange Commission on June 1. In recent years, Anthropic has gained the attention of investors as it competes with OpenAI -- these players are the developers of popular AI assistants, Claude and ChatGPT, respectively. Both of these AI labs have expressed interest in launching IPOs in recent times after raising billions of dollars in funding. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " And speaking of funding, Anthropic's valuation just hit $965 billion ahead of its market debut. This clearly is good news for the company -- but it's not the only winner. These two magnificent AI stocks may be the real winners. Image source: Getty Images. Anthropic's clues about growth So first, a quick note about Anthropic. As mentioned, it's the company behind Claude, coding assistant Claude Code, and other products. We have limited information about Anthropic's earnings since it isn't yet publicly traded, so it doesn't have to issue reports. But in recent times, the company has offered us some clues about its growth. Last month, Anthropic said it's seen ongoing growth in global enterprise adoption of Claude since its Series G funding round in February -- and its annual revenue run rate just hit $47 billion. In February, the run rate was $14 billion, and the company, at that time, said that three years prior, it hadn't yet earned $1 in revenue. Meanwhile, due to this growth in customers, Anthropic must invest in compute to support Claude and its development -- it's significantly increased capacity in recent weeks. All of this shows tremendous growth in a relatively short period of time, and it's not surprising that professional investors have rushed to get in on the story in the private market. Now, let's consider the two tech companies that may be significantly benefiting from Anthropic's soaring valuation -- and they are Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). For a few reasons. First, these companies are both investors in Anthropic, so they benefit as the company's value rises. Amazon in April said it was investing $5 billion in Anthropic right away, after having already invested $8 billion in the past. And the e-commerce and cloud computing services giant said it would invest as much as $20 billion in the future, depending on the achievement of commercial milestones. A $40 billion investment Alphabet recently said it plans to invest as much as $40 billion in Anthropic. Prior to this, Alphabet had invested about $3 billion and reportedly held a 14% stake in the company. That stake could be worth more than $100 billion today. Meanwhile, Anthropic is turning to Amazon and Alphabet for computing capacity -- for example, Anthropic recently committed to spending $100 billion on Amazon Web Services technologies over the coming 10 years. And both of these cloud service giants also offer access to Claude to their customers. So Amazon and Alphabet may benefit as Anthropic grows and invests more and more in compute -- and as customers flock to Claude. What does this mean for you as an investor? To gain exposure to Anthropic, you might participate in the upcoming IPO or buy the stock once it starts trading. But that isn't the only way to benefit from this exciting AI lab. You also might buy shares of Amazon and Alphabet, as they are likely to gain from Anthropic's progress in many ways, as I've mentioned above. This might be a particularly wise move for investors who seek a bit of security, considering Amazon and Alphabet both have a long history of earnings growth and very well-established businesses. At the same time, their participation in the Anthropic story could offer you exposure to a new wave of growth. Should you buy stock in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,258,838!* Now, it's worth noting Stock Advisor's total average return is 941% -- a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks " *Stock Advisor returns as of June 6, 2026. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Anthropic's Valuation Just Hit $965 Billion. These 2 Magnificent AI Stocks Are the Real Winners
Anthropic just became the latest artificial intelligence (AI) giant to announce an upcoming initial public offering. The AI lab joins Cerebras Systems, which launched last month, and SpaceX, which is aiming for a June 12 market debut. Anthropic hasn't yet decided on a potential date or other specifics; instead, it started the process by filing confidentially with the Securities and Exchange Commission on June 1. In recent years, Anthropic has gained the attention of investors as it competes with OpenAI -- these players are the developers of popular AI assistants, Claude and ChatGPT, respectively. Both of these AI labs have expressed interest in launching IPOs in recent times after raising billions of dollars in funding. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue " And speaking of funding, Anthropic's valuation just hit $965 billion ahead of its market debut. This clearly is good news for the company -- but it's not the only winner. These two magnificent AI stocks may be the real winners. Anthropic's clues about growth So first, a quick note about Anthropic. As mentioned, it's the company behind Claude, coding assistant Claude Code, and other products. We have limited information about Anthropic's earnings since it isn't yet publicly traded, so it doesn't have to issue reports. But in recent times, the company has offered us some clues about its growth. Last month, Anthropic said it's seen ongoing growth in global enterprise adoption of Claude since its Series G funding round in February -- and its annual revenue run rate just hit $47 billion. In February, the run rate was $14 billion, and the company, at that time, said that three years prior, it hadn't yet earned $1 in revenue. Meanwhile, due to this growth in customers, Anthropic must invest in compute to support Claude and its development -- it's significantly increased capacity in recent weeks. All of this shows tremendous growth in a relatively short period of time, and it's not surprising that professional investors have rushed to get in on the story in the private market. Now, let's consider the two tech companies that may be significantly benefiting from Anthropic's soaring valuation -- and they are Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). For a few reasons. First, these companies are both investors in Anthropic, so they benefit as the company's value rises. Amazon in April said it was investing $5 billion in Anthropic right away, after having already invested $8 billion in the past. And the e-commerce and cloud computing services giant said it would invest as much as $20 billion in the future, depending on the achievement of commercial milestones.
