What happened
A Wall Street analyst has expressed concerns about the upcoming initial public offering (IPO) of Anthropic, an artificial intelligence company, calling its $2 trillion valuation 'the most ridiculous IPO of 2026'. The analyst, Kyle Guske, estimates that Anthropic's actual worth is closer to $150 billion, which is 92% lower than its reported valuation.
Other experts have also warned about the potential risks of investing in AI companies, citing the example of the dot-com bubble of the late 1990s. They advise investors to diversify their portfolios and not put all their eggs in one basket, as the AI market is highly concentrated and a sudden downturn could damage investments.
Investment managers recommend spreading bets beyond AI, considering alternative investments such as bonds, and looking for growth outside the biggest technology companies. They also emphasize the importance of diversification, rather than trying to predict exactly when the market will turn.