Anthropic IPO valuation doubts rise after tech selloff and midterm slump

Following a tech selloff on Wall Street this week, some Anthropic investors are lowering expectations for the company's IPO valuation. Stakeholders told CNBC that even a $1.5 trillion valuation is now in doubt, with one investor calling that figure a "stretch." The shift comes as concerns grow about AI spending and a sharp post-midterm market slump.

Valuation expectations shift

Anthropic had recently been looking toward a $2 trillion valuation in its IPO. That target was in place when the company filed confidentially with the SEC. Last month, Anthropic was reportedly seeking a valuation as high as $2 trillion. As of May, the company was privately valued at $965 billion.

With the latest market turmoil, one investor said $1 trillion to $1.25 trillion is a more likely valuation target, although that could change with market conditions. Some investors now expect Anthropic to list below a $1.5 trillion valuation, with some saying that number could dip to $1 trillion.

Market and political backdrop

The Nasdaq plummeted more than 5% on Thursday, its steepest drop in 19 months. The decline reflected fears that Democrats' newfound power in Washington, D.C., and a nationwide rebuke of AI will lead to a slowdown in the buildout of data centers. The Democratic sweep in the midterms this week further increased fears that the buildout will slow.

Bearishness on the AI trade was on the rise before the election. The Nasdaq suffered its worst month in October since March 2025, led by declines in chipmakers and neoclouds.

Analyst and company response

Gil Luria, an analyst at D.A. Davidson, told CNBC that investors will expect the IPO to be priced at least at the low end of previous expectations. He said the market really needs this IPO to go well and that the bankers on the deal surely understand that. Luria added that the best way to set Anthropic up for success is to price the deal well.

Anthropic declined to comment. The company is set to list on the Nasdaq under the ticker ANT and is gearing up for an expected debut in a matter of weeks. The company is expected to kick off its roadshow next week. The investors asked not to be named because they are not authorized to speak about the matter.

Earlier coverage: Anthropic Files for Nasdaq IPO Under Ticker ANT, Reports $16.29 Billion H1 Revenue

Sources: CNBC · Decrypt Via Yahoo Finance · Financial Times