Bumper earnings from bellwether tech giants Anthropic and TSMC did little to assuage a market that has turned bearish on the AI trade, sending stocks plummeting. The frontier AI lab said its third-quarter revenue grew more than threefold compared to the first three months of the year, while the Taiwanese chipmaker reported a sixth consecutive record quarterly profit.
Yet as one analyst put it, at least in the case of Anthropic, traders were “increasingly concerned about the side effects of sustaining that growth”: Namely, the huge infrastructure buildout and the massive debt issuance funding it, with one AI cloud computing provider seeing yields on its bonds touching 15%. S&P futures — like Asian stocks — were down.
— Prashant Rao