Keithen Drury, The Motley Fool
4 min read
Anthropic has released its S-1 registration document, which highlights how its business runs and gives investors a chance to understand the company before it goes public. It’s slated to be the biggest IPO ever, likely debuting with a market cap of around $2 trillion. While Anthropic may be the featured company in its own S-1, there are several other stocks that could thrive based on the information in this document.
The five that I think have the most to gain are Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Taiwan Semiconductor (NYSE: TSM), Amazon (NASDAQ: AMZN), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). There are two primary categories here, but each of them is an investable theme.
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Computing suppliers have a bullish outlook based on Anthropic’s information
Two of the most notable points in Anthropic’s S-1 are just how much money the AI lab has spent on compute already, and how much it plans to spend. Over the next decade, it plans to spend around $518 billion on computing infrastructure. That’s a massive amount of money, but Anthropic isn’t hosting all of the workloads that utilize its platform.
While the average Claude user may use the webpage or app to work, most businesses will choose to host their Claude instances on their own servers to keep the information that they enter into the platform sequestered. That requires those companies to run the workloads on servers they lease from external cloud providers, which means a substantially greater amount of infrastructure will be needed beyond the $518 billion worth that Anthropic’s planning for.
As two of Anthropic’s primary computing unit providers, Nvidia and Broadcom should thrive over the next decade as more AI computing power is built out to handle those growing workloads. Taiwan Semiconductor will also be a beneficiary because it manufactures the chips designed by both Nvidia and Broadcom. These three stocks are the cornerstones of my personal AI computing power basket, and each looks like a tremendous buy right now.
AVGO PE Ratio (Forward 1y) data by YCharts.
All trade for less than 20 times next year’s expected earnings, which makes them great values, as Anthropic has confirmed that the AI data center build-out will last for many more years.
