Google and Nvidia each buy $10 billion of Anthropic stock

Anthropic sees about $93.7 billion in net proceeds at $74 midpoint

Alphabet’s Google and Nvidia are leading the $26 billion private placement that is concurrent with Anthropic’s planned initial public offering, and each will buy $10 billion worth of nonvoting Class N common stock, The Wall Street Journal reported. Advanced Micro Devices plans to invest $2.5 billion in the private placement, while Broadcom, Micron Technology and Microsoft will each invest $1 billion and Taiwan Semiconductor Manufacturing will invest $500 million.

Anthropic says an IPO priced at the $74-a-share midpoint of expectations would bring in roughly $93.7 billion in net proceeds when including the private placement and the IPO’s greenshoe.

The maker of the popular Claude AI tool plans to sell 825 million shares in its IPO at a range of $70 to $78 a share, putting it in line to raise more than $61 billion at the midpoint price. The private placement of up to $26 billion will occur immediately after the completion of Anthropic’s IPO.

Analysts at Yorkville Ives said Anthropic made a good choice when considering the size of its public offering. “In light of the volatility and nervousness across the tech trade over the past week, we believe pricing at roughly $1 trillion, with the option to move toward $1.2 trillion if the book allows, is the right move: a deal of this size gets one shot at its debut, and making it digestible for the market matters more than the last turn of valuation,” the analysts said. “A $1 trillion Anthropic that prices and trades well validates the capex that every name in the AI supply chain is being underwritten on and the cloud growth the hyperscalers just reported,” the analysts said.

Infineon Technologies’ earnings outlook has improved despite risks related to capacity expansion and artificial-intelligence demand sustainability, Mwb Research’s Abed Jarad wrote. The German chip maker raised AI sales forecasts for next year as it reported a rise in fourth-quarter earnings. “Capacity execution and the sustainability of AI demand still warrant some caution, but with earnings expectations moving higher and the valuation looking less demanding, we see a much better entry point,” Jarad said. Mwb raised its rating on the stock to buy from hold and its target price to €63.00 from €60.00. Shares were up 2% at €49.605 and 31% higher over the year to date.

Infineon projects revenue of about €20 billion for the fiscal year through September 2027, compared with the €16.35 billion it reported for fiscal 2026. Its segment result margin, a key profitability measure, is expected to come in the mid-20s percentage range, compared with 19.7% in fiscal 2026. Jefferies analysts wrote that the annual outlook will likely prove conservative in the coming months. Infineon shares traded 5.8% higher at €51.42.

Citi analysts said Infineon’s upgraded guidance for artificial-intelligence revenue is a positive signal on underlying AI and data-center demand despite recent concerns of a potential slowdown. The chip maker expects revenue from data centers in the year through September 2027 close to €4 billion, up from prior guidance of roughly €2.5 billion. The analysts said the forecast broadly meets investor expectations and should help underpin confidence in the durability of data center-driven growth. Infineon shares traded 5.7% higher at €51.39.

The Europe-wide Stoxx 600 index was on track to close at its first record high since August, as lower oil prices and a broader market recovery lifted the continent’s stocks. Banks and energy-intensive industrials rallied strongly, while artificial-intelligence hardware names also gained. Infineon, up 6.8%, led the index after signaling bullish AI-driven demand in quarterly earnings. Financials were the leading sector, up 1.7%. The index rose 0.7% to 661.32 points; a record close would be its first since Aug. 11, when it closed at 660.52 points.

Nvidia shares traded higher in premarket trading, having closed 4.3% lower Monday after the chip maker opened an investigation into Chief Executive Jensen Huang’s relationship with an executive accused of spying for China. The rally came despite President Donald Trump saying the FBI had started to look into the matter. “Certain investors might have taken the view that whatever happens to Jensen Huang, the company will continue to dominate the AI chip space,” AJ Bell’s Russ Mould wrote. Shares were up $3.13, or 1.75%, at $181.80 in premarket trade.

Capstone said the revelation that Huang had an affair with an executive accused of spying for China raises questions over Trump’s recent export-control policies. The asset manager expects the fallout to increase pressure on the Trump administration to take a tougher stance on export controls such as remote access and chip diversion. “We think the likelihood of further easing restrictions on advanced chip exports has declined amid uncertainty around Nvidia’s standing with the Trump administration,” it said.

Capstone said it did not expect a return to the more hawkish policies of the Trump administration’s predecessor, given the broader interest in maintaining the U.S.-China detente. It said some of the recent concessions, particularly around H200 chip exports, could be vulnerable to rollback.

RBC’s Paul Treiber said Constellation Software remains on track for a record year despite falling short on third-quarter M&A deployment. The Canadian software company deployed $576 million in the quarter, below the $1 billion RBC expected, in part because several committed acquisitions had not yet closed by the end of the quarter. In the fourth quarter so far, Constellation has committed another $673 million, and the year-to-date figure is hovering around $2.79 billion, net of cash acquired, Treiber noted. That sum is ahead of the prior record of $2.6 billion set in 2023.

“Management characterized M&A as very busy across all geographies and verticals, even though private market software valuations have not materially declined,” the analyst said. Treiber said Constellation should hit $2.9 billion in M&A deployment in 2026 and $3 billion in 2027.

Vodafone Group’s German recovery seems to have stalled, and overcoming its struggles there will be the next big hurdle for the U.K. telecommunications group, AJ Bell’s Russ Mould said. The company raised its full-year guidance, in a sign of the progress it has made under Chief Executive Margherita Della Valle, Mould said. “Della Valle’s big decisions since taking over as CEO—including ditching its Italian and Spanish businesses and combining its U.K. operations with Three—have largely been vindicated,” he said.

However, Germany remains a thorn in the side for Vodafone, as intense competitive pressures prompted organic service revenue to drop in the group’s core business, AJ Bell said. Shares fell 1.5%.

T. Rowe Price’s Jennifer Martin said investors may become more selective on AI investments. “We remain constructive on AI’s long-term potential, but… the opportunity lies in identifying where growth potential can translate into durable earnings and attractive returns,” said Martin, a global equity portfolio specialist. She pointed to market concerns about capital intensity, financing requirements and the sustainability of exceptional growth rates in the sector. Near-term AI investment is likely to remain strong, with much of the AI infrastructure planned for 2026 and 2027 already permitted or under construction, she said.