• Anthropic's Q3 revenue rose 45% to $16.8 billion, a sharp slowdown from 147% sequential growth in Q2.
  • The deceleration raises doubts about the company's reported $2 trillion valuation target and pressures AI-linked stocks.
  • AMD (AMD), Micron (MU), Seagate (STX), Western Digital (WDC), and Sandisk (SNDK) fell 3–4% in premarket trading as inflation and financing worries compound the selloff.

Growth Cools, Valuation Questions Mount

Anthropic's quarterly revenue grew 45% to $16.8 billion, according to people familiar with the matter, but that marked a steep deceleration from the triple-digit pace investors had grown accustomed to. The company disclosed the figures during an investor meeting on October 14, ahead of a potential IPO. The slowdown, while still robust on an absolute basis, is fueling concerns that the AI developer's reported $2 trillion valuation target may be stretched.

The numbers, first reported by Reuters (TRI), show a dramatic cooling from the prior quarter. Anthropic's revenue rose from $4.7 billion in Q1 to $11.6 billion in Q2—a 147% sequential jump—before slowing to $16.8 billion in Q3. These figures come from investor-meeting disclosures rather than a public earnings release, and the company declined to comment.

Market Reaction: AI Stocks Slide

Premarket trading reflected the unease. At approximately 4:29 a.m. EDT, Micron was down 4.1%, while Western Digital and Seagate each fell more than 4%. AMD dropped over 3%, and SanDisk was down nearly 4%, according to separate early reports. The declines were part of a broader global technology selloff, but the symmetry with Anthropic's news was unmistakable.

The selloff wasn't solely about Anthropic. Renewed U.S. inflation concerns and expectations of tighter Federal Reserve policy added to the pressure. AI-related credit markets have also shown strain: global AI debt issuance fell to $23 billion in September, roughly half of August's volume and well below June's $113 billion peak. Still, year-to-date issuance stands at about $466 billion, up from $101 billion a year earlier, according to Morgan Stanley (MS) data cited in reports. That mix of accumulated borrowing and slowing new financing makes investors sensitive to any growth disappointment.

Profitability and IPO Ambitions

Despite the slowdown, Anthropic reportedly achieved an adjusted profit in Q3—a notable milestone for a company that posted an operating loss of more than $8 billion in 2025. But adjusted profitability doesn't guarantee sustainable free cash flow, especially given Anthropic's massive infrastructure commitments, which total at least $518 billion over roughly a decade. PitchBook (MORN) estimates that about 80% of those obligations are noncancelable or payable regardless of usage, creating a fixed cost base that could strain finances if revenue growth continues to decelerate.

The company is targeting a valuation above $2 trillion in its IPO, which Reuters reports is likely to come after the November U.S. midterm elections. Final timing and valuation remain unsettled. A proposed governance structure would give founder-controlled shares 50.1% voting power and allow the Long-Term Benefit Trust to elect four of seven directors, leaving public shareholders with limited influence.

Beyond the Headlines

Anthropic's revenue trajectory remains impressive: 2025 revenue was nearly $4.6 billion, roughly twelvefold annual growth, and Q1 2026 revenue exceeded the entire previous year. The Q3 slowdown represents deceleration from an extraordinary pace, not declining sales. But the episode highlights a classic infrastructure-cycle risk: companies commit capacity years ahead of demand, then become vulnerable if revenue arrives more slowly than expected.

Analysts are divided. PitchBook's Harrison Rolfes argues that reported growth does not yet justify a $2 trillion valuation and wants evidence of durable cash returns. A more bullish take suggests the revenue scale and adjusted profitability make the valuation more defensible. Neither view resolves the missing detail on sustainable margins and cash generation.

Investors will watch for fuller financial disclosure and whether AI-related credit conditions stabilize. As one market observer put it, "The key concern is whether growth is fast enough to justify the enormous commitments." With inflation and rates in the mix, the AI trade is facing its most serious test yet.

Clarification: This article has been updated to clarify that premarket prices are reported snapshots, not live quotes.