CNBC host Jim Cramer recommended buying shares of Goldman Sachs following Anthropic's initial public offering prospectus filing on Monday, highlighting the bank's position as lead underwriter alongside Morgan Stanley for the AI startup's upcoming listing under the ticker ANT.
Underwriting Windfall and Big Tech AI Equity Sales
Goldman Sachs and Morgan Stanley—the same pairing behind SpaceX's listing—stand to collect major underwriting fees from Anthropic's debut. The deal adds to a broader trend of massive AI-driven equity sales across Wall Street. Alphabet previously sold $85 billion of stock in June, while Meta Platforms is reportedly planning a $95 billion sale according to CNBC.
Anthropic's prospectus revealed that no single customer accounted for more than 10% of its revenue during the nine months through Sept. 30. However, the filing flagged ongoing cloud spending commitments that remain due even if artificial intelligence demand slows. Markets responded positively on Monday: the Nasdaq gained 1%, the S&P 500 rose just under 1%, and chip stocks led the advance supported by lower oil prices and falling bond yields.
Next Sellers and Fed Rate Outlook
With companies turning to equity markets rather than cash reserves to fund AI expansion, Cramer identified Amazon and Microsoft as the most likely next candidates to issue stock, with both reporting earnings this week. In contrast, he considered further issuance from Alphabet unlikely following its June sale. Disclosures from Cramer's charitable trust show long positions in Meta, Amazon, Microsoft, Alphabet, and Boeing.
However, market strategists urge caution during this earnings season. Dan Niles, founder of Niles Investment Management, warned investors to build cash reserves ahead of earnings releases. Macroeconomic policy also remains in focus: the Federal Reserve is expected to keep rates unchanged on Wednesday, though another hike is expected in December following September's first increase in three years. As Anthropic prepares for its public listing, investor capacity to absorb mega-cap stock offerings alongside Fed tightening will determine whether the tech rebound holds.
Key Takeaways
- Goldman Sachs and Morgan Stanley are leading Anthropic's IPO underwriting under ticker ANT.
- Alphabet raised $85 billion in June, while Meta plans a $95 billion stock offering.
- Anthropic reported no client generated over 10% of revenue in the nine months through Sept. 30.
- Federal Reserve expected to hold rates Wednesday before a potential December rate hike.
Why It Matters
The reliance on equity markets to finance artificial intelligence buildouts indicates that AI capital expenditure has outpaced corporate cash flow. Underwriters like Goldman Sachs benefit directly through transaction fees, but large stock supplies from Meta, Anthropic, and potentially Amazon or Microsoft risk diluting market liquidity. How investors absorb these multi-billion-dollar stock sales amid shifting Federal Reserve interest rate policy will be a pivotal test for equity markets through the end of the year.
