Traders sour on AI stocks despite bumper third-quarter revenues
Anthropic said its third-quarter revenue grew more than threefold compared to the first three months of the year but traders grow increasingly concerned. Bumper earnings from bellwether tech giants Anthropic and TSMC did little to assuage a market that has turned bearish on the AI trade, sending stocks plummeting. The frontier AI lab said its third-quarter revenue grew more than threefold compared to the first three months of the year, while the Taiwanese chipmaker reported a sixth consecutive record quarterly profit. Yet as one analyst put it, at least in the case of Anthropic, traders were “ increasingly concerned about the side effects of sustaining that growth ”: Namely, the huge infrastructure buildout and the massive debt issuance funding it, with one AI cloud computing provider seeing yields on its bonds touching 15%. S&P futures — like Asian stocks — were down.
Anthropic said its third-quarter revenue grew more than threefold compared to the first three months of the year but traders grow increasingly concerned. Bumper earnings from bellwether tech giants Anthropic and TSMC did little to assuage a market that has turned bearish on the AI trade, sending stocks plummeting. The frontier AI lab said its third-quarter revenue grew more than threefold compared to the first three months of the year, while the Taiwanese chipmaker reported a sixth consecutive record quarterly profit.
Yet as one analyst put it, at least in the case of Anthropic, traders were “ increasingly concerned about the side effects of sustaining that growth ”: Namely, the huge infrastructure buildout and the massive debt issuance funding it, with one AI cloud computing provider seeing yields on its bonds touching 15%. S&P futures — like Asian stocks — were down.