Catalyst Investors sees AI boom avoiding bubble as market leadership rotates
QQQ•Catalyst Investors says the AI boom is not yet a bubble, with earnings growth driving semiconductor gains. It cites Anthropic’s reported IPO valuation range of $1.5 trillion to $2 trillion and OpenAI’s effort to raise about $30 billion at a $1.25 trillion valuation.
1. AI market risks
Catalyst Investors says semiconductor gains have been driven by earnings growth rather than expanding valuations, while frontier labs trade below the median for high-growth software peers. Anthropic’s compute commitments exceed $540 billion against $131.7 billion in cash and securities, making sustained revenue growth critical; the brief says a weak Anthropic debut, a smaller OpenAI round at a lower valuation or broader neocloud credit stress could derail the AI rally.
