The author expects Anthropic's IPO, possibly before Thanksgiving, to draw heavy attention that will likely fade, as happened after the Space Exploration Technologies IPO earlier this year. Nvidia and Broadcom are both major Anthropic suppliers: Nvidia's GPUs are flexible across many workloads, while Broadcom designs custom AI chips with hyperscalers, and Anthropic uses TPUs co-designed by Alphabet and Broadcom. The author argues that suppliers' shares are more attractive than the customer's, since not every fast-growing company reaches long-term profitability. Valuing the stocks on next year's earnings, the author considers about 30 times trailing earnings a fair P/E; on that basis Nvidia could rise more than 100% if it hits its projections, while Broadcom would need to almost double. The author rates both stocks as well positioned for strong 2027 results and considers their risks lower than those of a newly listed company.
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