Wall Street has identified Broadcom as a major beneficiary of Anthropic's IPO. Who else stands to gain?

Shares of chipmaker Broadcom jumped 5% during trading on October 27. Analysts believe the company could be one of the major beneficiaries of Anthropic’s initial public offering, making now a good time to buy these semiconductor stocks. We’ve compiled a list of other companies that could benefit from one of the first IPOs by a leading AI developer.

DA Davidson analyst Gil Luria upgraded his rating on Broadcom shares from “neutral” to “buy” and raised the price target from $350 to $400, according to CNBC. This target implies approximately 22% upside potential for the company’s stock compared to Monday’s closing price. “After reviewing Anthropic’s prospectus, we believe the IPO will proceed and the AI lab will raise capital, and that OpenAI will raise additional capital next year through its own IPO, which will enable Broadcom to meet its forecasts for the next couple of years,” Luria wrote in a note to clients. The analyst noted that the chipmaker’s shares are trading at a forward P/E of 16 for 2027 (the ratio of the share price to expected earnings per share), as if the chances of such a scenario were close to zero. If both IPOs go ahead, the stock will have significant upside potential, Luria believes.

He identified Broadcom, as well as Amazon (through its cloud business) and Google's parent company, Alphabet, as the key beneficiaries of Anthropic's initial public offering, according to CNBC.

Luria explained that the main imbalance in the stock market is that chipmakers such as Broadcom, Micron, and Nvidia are trading as if the AI spending boom has already ended (their P/E ratios range from 5 to 16 based on projected earnings for 2027). Other AI stocks, on the other hand, are trading as if the cycle will continue, according to Seeking Alpha.

“We understand the market dynamics that led to this anomaly, but we believe that fundamentals will ultimately lead to a return to the mean,” the analyst added. In his view, it is unlikely that several semiconductor companies will thrive while Nvidia, Micron, and Broadcom struggle.

Broadcom and Anthropic have been actively expanding their collaboration over the past year: Broadcom’s relationship with Anthropic encompasses the provision of computing power, equipment leasing, and financing, giving the semiconductor manufacturer a central role in building Anthropic’s infrastructure, Reuters reported. In addition, in its IPO prospectus, the AI company disclosed that Broadcom is prepared to provide it with up to $42 billion in credit to pay for the lease of computing power. This debt may be converted into Anthropic shares after the IPO.

Analysts at Raymond James, William Blair, and Wolfe Research agreed that the business relationship between Broadcom and Anthropic could become an important source of potential growth for the chipmaker, especially if the AI company goes public, according to CNBC. Broadcom’s multibillion-dollar deal with Anthropic promises growth “across the entire supply chain,” which should boost the stocks of a number of chipmakers, including Broadcom, noted Chris Caso of Wolfe Research.

Anthropic’s IPO prospectus is also significant for companies with which the AI developer has signed contracts—companies that cannot simply be labeled “AI stocks,” notes Investing.com. A successful debut will increase the value of their stakes in Anthropic and strengthen the justification for expense commitments related to these deals. Among such companies, the portal lists:

— Alphabet. According to Investing, the company stands to benefit from Anthropic’s IPO in three ways: revenue from cloud services, demand for TPU chips, and a stake in the AI company capped at 14.99%. In addition, Alphabet has provided Anthropic with a $20 billion credit line and holds an option to purchase $10 billion worth of its shares during the IPO. Google’s parent company may be the most undervalued beneficiary of this listing, the portal notes: on the day Anthropic’s prospectus was published, its shares rose by only 0.2%. On October 27, Alphabet’s shares gained 1%.

— AMD. Anthropic has committed to purchasing Helios rack-mounted systems based on MI450 AI accelerators from AMD starting in 2027, for a total of more than $20 billion. In turn, AMD will invest up to $5 billion in Anthropic stock as deployment milestones are met, acting as both a supplier and an investor. On Tuesday, AMD’s stock rose 5%.

— Nvidia has the upper hand due to the volume of computing power it purchases—Anthropic uses its chips. However, Anthropic is primarily relying on TPUs, so this strategy of using multiple chip suppliers could eventually weaken Nvidia’s ability to dictate prices, notes Investing.com. On October 27, Nvidia’s stock rose nearly 1% during trading.

— Amazon. The company has invested approximately $18 billion in Anthropic. The convertible bonds in Anthropic that Amazon holds can be converted into up to 1.84 billion shares, or approximately 10.9% of the equity on a fully diluted basis. Therefore, a high offering price for the AI company’s securities will significantly increase the value of Amazon’s stake. In addition, Anthropic has committed to spending $110 billion on Amazon’s services, the website reports. On October 27, Amazon’s stock rose by about 2%.

— Microsoft. Anthropic has committed to purchasing $44.9 billion worth of computing power from the company. However, Microsoft’s stock has risen 36.9% over the past three months, so some of the positive news is likely already priced in. On Tuesday, the company’s stock is down 0.2%.

— SpaceX. The company could earn about $37 billion a year by providing computing power to Anthropic. However, once the initial contract terms expire in early 2027, the contracts may be terminated. On October 27, SpaceX’s stock rose 2%.

At the same time, Amazon, Alphabet, and Microsoft are also competitors of Anthropic. These companies’ cloud platforms accounted for 48% of the AI company’s revenue in the first half of the year. Anthropic’s IPO prospectus notes that the company may give preference to its own models, according to Investing.

The portal also highlighted manufacturers of high-speed, high-bandwidth HBM memory, which are mentioned in the IPO prospectus as a less obvious way to profit from the development of AI infrastructure. Among other likely beneficiaries, Investing also mentions suppliers of power and cooling systems, networking equipment, and optics (although these companies are not mentioned in the prospectus). On the other hand, software developers that charge per license may come under pressure due to the AI company’s listing, as Anthropic enters the application software market, the portal notes.

Anthropic’s IPO prospectus was published yesterday. The company plans to list on the Nasdaq in November under the ticker symbol ANT. In the document, the AI developer disclosed its financial results: revenue for the first half of the year rose to $16.3 billion, while the net loss totaled $80.7 billion. Among the key risks, the company cited competition, the “existential risks” of AI to humanity, and its dependence on cloud partners—Amazon, Alphabet, and Microsoft.

This article was AI-translated and verified by a human editor