Tech selloff raises new doubts on Anthropic's IPO

A Wall Street selloff tied to artificial intelligence erased more than $2 trillion in technology stock value on Thursday, November 5, 2026, according to a market recap by Yahoo Finance. It now forms the backdrop for Anthropic's initial public offering, or IPO, the industry's most closely watched pending stock sale. Read more: Tech selloff raises new doubts on Anthropic's IPO

In fact, it was one of the worst days for AI stocks in years. That rout landed two days after Democrats' sweep in Tuesday's midterm elections.

The Nasdaq Composite closed down 5.5%, more than 10% below its recent high, and its tech-heavy Nasdaq-100 index wiped out roughly $2.3 trillion in value. The Dow Jones Industrial Average dropped 1,833 points, or 3.44%. But chipmakers fared worse: the Philadelphia Semiconductor Index fell 12.25%.

Nvidia fell more than 6%, AMD dropped as much as 15% and Micron slid 12%, Yahoo Finance reported.

Analysts gave two explanations for the rout. Charlie McElligott, a strategist at Nomura, said hedge funds were mainly unwinding crowded trades to lock in year-end profits. However, it was not a sudden problem with any company's business, he said. "They're shooting the generals," he said, according to Yahoo Finance.

But other investors pointed to Tuesday's midterm elections, in which Democrats won control of Congress.

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Trajan Wealth's chief investment officer, David Busch, said those investors are weighing concern about AI regulation, according to NPR Illinois. They also worry about new pushback on data center construction nationwide, he said.

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Busch pointed to Texas, where Gina Hinojosa won the governor's race after campaigning on slowing AI development. It was one of several state-level wins for candidates who had run against the AI buildout.

So that political backdrop now hangs over Anthropic's IPO.

The Wall Street Journal reported November 5 that Anthropic's targeted raise may shrink. That target could fall from up to $100 billion to around $80 billion, according to a summary of the report.

The Journal attributed that figure to an investor planning to join the offering. That investor said major investors doubt the deal can price at Anthropic's expected $1.5 trillion valuation after the market unwind. Still, some investors want to see Anthropic's own disclosed results first, the Journal reported.

Anthropic filed its IPO registration statement, known as an S-1, on October 26 and an amended version on November 2. The amendment disclosed third-quarter revenue of about $17 billion, more than 12 times the $1.4 billion reported a year earlier. Nine-month revenue, meanwhile, was roughly $33.2 billion.

It also reported about $131.8 billion in cash and short-term investments as of September 30, plus signed compute contracts worth roughly $895.4 billion. Anthropic is targeting the Nasdaq under the ticker ANT.

The $80 billion figure comes from a single unnamed investor relayed by the Journal, not from Anthropic, and the company has not confirmed it publicly.

Under standard SEC timing, Anthropic could begin pitching the offering to investors, a step known as a roadshow, as early as November 10. The price range, exact raise size and listing date are still blank in the filing.