Stock Market Today: Anthropic Files for Its IPO and Chip Stocks Catch the Wave
One filing with the US Securities and Exchange Commission (SEC) was enough to lift the whole chip sector on Monday. Anthropic, the company behind the Claude chatbot, released the paperwork for its planned initial public offering (IPO), which is when a company first sells shares to the public.
The filing showed that Anthropic's revenue is growing at a rate that very few companies have ever reached. It also reported a loss larger than the market value of most companies in the S&P 500. Investors focused on the revenue rather than the loss. With a Federal Reserve decision coming in two days, this shows how much investors still want to invest in AI.
The Rundown
- A major AI company filing to go public renewed interest in AI stocks and helped chipmakers and data center hardware companies rise.
- Big Tech companies are still finding new ways to pay for AI, including a huge share sale and large voluntary employee buyout programs.
- The possibility of a US-Canada tariff deal before the midterm elections put pressure on US steelmakers.
- The Federal Reserve will announce its decision on Wednesday. PCE inflation and GDP figures are due on Thursday.
Anthropic opens its books
The Nasdaq Composite (COMPX | ▲0.82%) led the major stock indexes. The S&P 500 (SPY | ▲0.71%) also rose, while the Dow Jones (DJI | ▲0.28%) gained less.
Anthropic filed its S-1 registration document on Monday. The company plans to list its shares on the Nasdaq Global Select Market under the ticker “ANT”. The number of shares it will sell and its expected value are not yet known. The listing is expected next month, possibly during the week before Thanksgiving. Anthropic earned $16.3 billion in revenue during the first six months of 2026. Its net loss over the same period was $80.7 billion. But that figure needs a closer look: $72.4 billion of the loss was a non-cash charge caused by changes in the value of convertible notes and similar financial instruments. These instruments became much more valuable as Anthropic's own valuation rose. The prospectus also clearly explains the company's main risk. If Anthropic can no longer produce AI models at the highest level, its business will suffer.
The market did not see this as news about just one company. Instead, investors treated the filing as a sign of confidence in the entire AI supply chain. A potentially record-breaking IPO needs investors who are willing to buy shares, and Monday's trading showed that such demand is still there.
Chips and hardware ride along
INTEL CORP (INTC | ▲4.04%) was one of the strongest stocks in the group, rising 4%. MICRON TECHNOLOGY INC (MU | ▲2.98%), ADVANCED MICRO DEVICES (AMD | ▲2.80%), NVIDIA CORP (NVDA | ▲2.39%) and BROADCOM INC (AVGO | ▲2.33%) each gained between 2% and 3%. SANDISK CORP (SNDK | ▲1.42%) also finished higher.
Companies that make computer hardware also gained. DELL TECHNOLOGIES -C (DELL | ▲2.33%) and HP INC (HPQ | ▲1.34%) both ended the day higher.
There is a reason investors are paying close attention to these companies. According to Dow Jones Market Data, Nvidia and Micron, which will both report results in the coming weeks, are expected to account for 34% of the S&P 500's earnings growth for the past quarter.
It is impressive that two companies are expected to deliver one-third of the index's profit growth. But it also shows a risk for anyone investing in an index fund: a large part of the overall result depends on just a few companies, whether investors realize it or not.
Meta's $95 billion funding plan
Not every stock joined the rally.
META PLATFORMS INC-CLASS A (META | ▼1.88%) fell almost 2% after explaining how it plans to pay for its AI projects. Meta launched a share offering worth about $35 billion. This includes $12.5 billion in mandatory convertible preferred stock and $22.5 billion in Class A shares sold through agreements to sell the shares at a later date.
Nvidia, AMD and Broadcom have shown interest in buying up to $5 billion of these shares, but they have not made binding commitments. Meta also plans to sell up to $60 billion in Class C stock through an at-the-market program, which means shares would be sold over time at current market prices. This program will not begin before the first quarter of 2027. Together, these plans could raise about $95 billion in new equity to help pay for capital spending of $135 billion to $145 billion this year.
When chipmakers that sell hardware to a company also buy shares in that company, some of the money moves in a circle. That does not necessarily make the arrangement wrong, but it makes it harder for outsiders to judge the true costs and benefits of the AI expansion. Existing shareholders must also remember that issuing more shares reduces their percentage ownership of the company.
SEC – Meta Platforms free writing prospectus
Microsoft trims, SpaceX rents, Musk warns
MICROSOFT CORP (MSFT | ▲1.54%) gained 1.5% after reports that it plans to offer voluntary departure packages to about 60,000 employees, or roughly 27% of its workforce, to help cover rising AI costs. There is reportedly no fixed target for how many people must leave. The offer is open to US, Canadian, Indian and UK employees up to the level of vice president.
This is Microsoft's third major workforce change this year, following a buyout offer to about 7% of its US staff in April and 4,800 job cuts in July. At this stage of the AI boom, investors are rewarding companies that control their costs.
SPACE EXPLORATION TECHN-CL A (SPCX | ▼0.40%) is taking a different approach to getting computing power. Instead of buying AI chips, it will lease them through an investment fund run by Apollo Global Management. The fund will buy the chips and rent them to SpaceX in a deal worth billions of dollars. This arrangement keeps billions of dollars' worth of hardware off SpaceX's own balance sheet.
Over the weekend, Elon Musk warned that hundreds of companies known as neocloud providers could face a wave of bankruptcies. He called this a “guppy-level death”. These companies provide computing power to customers, often using large groups of AI chips. Their stocks reacted in different ways.
CORE SCIENTIFIC INC (CORZ | ▲3.13%) and COREWEAVE INC-CL A (CRWV | ▲1.76%) were little affected by the warning and ended higher. Meanwhile, APPLIED DIGITAL CORP (APLD | ▼2.30%) and NEBIUS GROUP NV (NBIS | ▼3.45%) finished lower.
I do not think the warning is as far-fetched as it might sound. Companies that borrow money to buy graphics processing units (GPUs) and then rent them out on short contracts are at risk if the price of computing power falls. Their financial strength will help determine which companies survive and which fail.
Upgrades give Tesla and defense a push
TESLA INC (TSLA | ▲5.21%) rose more than 5% after Barclays upgraded the stock and raised its price target to $450. That target was about 21% above Tesla's closing price on Friday. Analyst Dan Levy expects a possible merger with sister company SpaceX to improve efficiency. He also points to signs of improvement in Tesla's main car business and the possibility of a major advance in its robotaxi plans.
In the defense sector, LOCKHEED MARTIN CORP (LMT | ▲5.13%) gained 5% after Morgan Stanley upgraded the stock to overweight, meaning it recommended holding more of it than the benchmark index. The bank raised its price target from $690 to $835, implying about 38% upside from Friday's closing price.
The main reason was a new agreement with the Pentagon to continue producing F-35 fighter jets. CACI INTERNATIONAL INC -CL A (CACI | ▲4.89%) also rose almost 5% after Jefferies upgraded the stock from hold to buy and set a price target of $725.
Investors value defense companies partly based on how predictable their revenue is. A long-term agreement to keep producing the F-35 gives Lockheed Martin a high degree of certainty about future business.
FICO punished for not raising prices
FAIR ISAAC CORP (FICO | ▼13.15%) fell 13% after announcing that it would keep the price of its mortgage credit score at $10 per score for members of a premium package. Almost every US bank uses FICO scores to judge whether borrowers are likely to repay loans, so many lenders may accept the offer. The problem is that investors expected FICO to keep raising prices sharply to increase profits. Wells Fargo was disappointed and lowered its price target from $800 to $735.
It is unusual for a company to be punished for keeping prices steady. However, FICO's mortgage pricing has faced political criticism since a Senate inquiry earlier this year. I see this decision partly as a response to that pressure. Investors who paid a high price for the stock because they believed FICO could keep raising prices without limits now need to change their expectations.
Steel: Nucor delivers, Canada looms
According to Reuters, the US and Canada are working on a deal to lower tariffs, which are taxes on imported goods. Canadian steel currently faces a 50% import duty, while Canadian cars face a 25% duty. People familiar with the talks say a deal could be reached before the November 3 midterm elections. US steel stocks fell on the news. CLEVELAND-CLIFFS INC (CLF | ▼3.74%) dropped the most, followed by STEEL DYNAMICS INC (STLD | ▼1.65%). NUCOR CORP (NUE | ▼0.29%) changed very little.
Nucor reported its results after the market closed and did better than its own forecast.
- Net earnings for the third quarter were $1.32 billion, or $5.80 per share. This was above the company's forecast of $5.55 to $5.65 per share. It was also higher than the $5.04 per share reported in the second quarter and the $2.63 reported a year earlier.
- Revenue rose to about $11.2 billion, up from roughly $10.4 billion in the previous quarter and around $8.5 billion a year earlier.
- Higher selling prices and sales volumes helped the steel mills and steel products businesses improve their results. Higher costs partly offset these gains, while the raw materials business earned less.
- Nucor expects fourth-quarter earnings to be about the same as, or slightly higher than, third-quarter earnings. Its stock barely moved in after-hours trading.
The results show how much protection from import tariffs has helped US steelmakers. The big question is how much of their profit margins they can keep if Canadian steel becomes cheaper. Monday's trading suggests investors have started to consider that risk.
Verizon raises again, the stock falls anyway
VERIZON COMMUNICATIONS INC (VZ | ▼3.49%) reported record third-quarter results and raised its forecast for the full year for the third quarter in a row.
- Adjusted earnings per share (EPS) rose to $1.31 from $1.21, while revenue increased 1.5% to $34.3 billion.
- Free cash flow, the money left after certain business costs and investments, rose 12.1% to $7.8 billion.
- The biggest highlight was a net gain of 406,000 postpaid phone customers, compared with just 44,000 a year earlier.
- Verizon now expects adjusted EPS of $5.04 to $5.06 for 2026 and a net gain of 1.1 million to 1.2 million postpaid phone customers.
- The company also expanded its partnership with Amazon through a deal worth more than $2 billion with Amazon Web Services to provide AI infrastructure.
Even with these strong results, Verizon's stock fell 3.5%. My guess is that investors are still worried about future competition, following Friday's selloff in telecom stocks after reports that SpaceX was planning cell tower services. That is a difficult concern for any phone company to overcome with just one strong earnings report.
DoorDash goes shopping
According to The Wall Street Journal, DOORDASH INC - A (DASH | ▼6.10%) is in advanced talks to buy
MAPLEBEAR INC (CART | ▲7.87%) in a deal worth about $17 billion. The deal could be finalized as early as this week.
The stock movements followed a common pattern: the company being bought went up, while the company making the purchase went down. Combining the leading restaurant delivery company with the leading grocery delivery company would give DoorDash a much larger business. I also expect antitrust regulators, who review deals that could reduce competition, to examine the deal closely.
Brazil's election shock
Brazilian companies listed in the US had a difficult day after incumbent President Lula won the election unexpectedly. XP INC - CLASS A (XP | ▼48.36%) lost almost half its value, while MERCADOLIBRE INC (MELI | ▼7.81%) fell close to 8%. When an election result surprises investors this much, they quickly change how much extra risk they think they are taking by investing in that country's companies. This can lead to sharp price changes in a single trading session.
Oil, the Fed and a busy Thursday
Oil prices ended lower even though Houthi rebels carried out new attacks in Saudi Arabia. West Texas Intermediate (WTI) crude oil settled just below $102 a barrel. Economic news was limited on Monday. The Chicago Fed National Activity Index rose above zero in September, and the euro was trading at $1.1177 on Monday evening.
The Federal Reserve will announce its interest rate decision on Wednesday. UBS expects the Fed to raise rates in December and again in January, but says a quick rate increase is unlikely because the current meeting is so close to the midterm elections. On Thursday, the Fed's preferred measure of inflation, known as the Personal Consumption Expenditures (PCE) price index, will be released alongside figures on gross domestic product (GDP), which measures the size of the economy.
What I'm watching
Chair Warsh's tone on Wednesday matters more than the decision itself, especially with oil prices above $100 a barrel. After that, several major companies will report earnings in the coming days, including SK Hynix, Samsung, Alphabet, Microsoft, Intel and Amazon. I'm also watching to see whether the US and Canada reach a trade deal before November 3, and whether DoorDash and Instacart announce their deal this week.
Bottom line
Monday was all about AI. A single IPO filing lifted the entire chip sector, Meta showed how much the AI expansion costs, and Microsoft showed one way it plans to reduce those costs.
Beyond the AI news, analyst upgrades, a possible tariff deal and an unexpected election result caused some stocks to move sharply. With the Fed decision, PCE inflation figures and a wave of Big Tech earnings coming this week, I would watch closely how much of my portfolio depends on the AI trade continuing to do well.
ChartMill Market Desk - Kristoff
Of the stocks mentioned in this article, I currently hold positions in Nvidia and Microsoft.
Disclaimer: ChartMill prepares this daily update for information only. It is not professional investment advice, a personal recommendation, a request or offer to buy or sell any stock, or advice about any financial instrument. All figures, prices and market data refer to the trading session mentioned and may change without notice. Readers are responsible for their own investment decisions. They should do their own research and, when appropriate, speak with a licensed financial adviser before acting on any information in this article. Unless the article says otherwise, the author does not hold positions in the stocks mentioned. Past performance does not guarantee future results.