Anthropic Is Aiming for the Biggest IPO Ever -- Here's the Chip Stock to Buy Before It Lists
Key PointsBroadcom has agreed to loan Anthropic up to $42 billion, according to reports on the AI lab's IPO filing.
Anthropic, the company behind the Claude chatbot, has filed for an initial public offering (IPO) to raise up to $100 billion, potentially setting a new record for the largest IPO. This would surpass SpaceX's $86 billion IPO in June. Currently, most investors cannot purchase Anthropic stock. However, a public company with a close connection to Anthropic's AI lab spending may present an investment opportunity.
Reuters reported on October 1 that Anthropic's IPO filing reveals that Broadcom, with the stock ticker NASDAQ:AVGO, has agreed to provide a loan of up to $42 billion to the AI lab using convertible notes. This loan could potentially cover approximately one-third of Anthropic's $125.2 billion, five-year commitment to lease computing capacity on tensor processing units (TPUs). Broadcom is a key player in the design of these custom AI chips.
As of now, Broadcom's stock is trading at around $355, down about 28% from its 52-week high. Given this price point, some analysts believe Broadcom might be a worthy investment to consider before Anthropic officially lists on the stock market.
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