What Anthropic’s $50B AI investment means for these 3 portfolio stocks
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks were mixed Wednesday as Wall Street hoped for an end to the government’s record-breaking shutdown. The House is set for a final vote in the evening on the Senate-backed bill that could reopen the federal government. The Dow hit an all-time high earlier in the session. The S & P 500 and Nasdaq were under some pressure as tech lagged and investors rotated into sectors like health care and financials. Eli Lilly on Wednesday topped $1,000 per share for the first time while Goldman Sachs soared 3%. Both are Club holdings. Data centers: Anthropic plans to pour $50 billion into artificial intelligence infrastructure over the coming years. The investment, announced on Wednesday, will go into building data centers in New York and Texas first. The first locations are expected to go live next year, with more likely to follow. Anthropic said that the energy-intensive facilities should provide power for its AI tools and expand the Claude chatbot maker’s research and development. Anthropic’s commitment is good news for Club holdings GE Vernova , Eaton , and Dover, which all play a role in the data center buildout. GE Vernova manufactures the natural gas turbines used to support these facilities, while Eaton makes power management solutions to make them more efficient. Dover sells thermal connectors and heat exchangers for the sites, too. More AI data centers mean more demand for power solutions. Moving forward, it doesn’t look like data center construction is slowing anytime soon. JPMorgan estimates that global data centers, AI infrastructure, and related power supplies will cost over $5 trillion between 2026 and 2030. Analysts described the demand for compute as “astronomical” in a Monday note to clients. To be sure, investors have had concerns about eye-watering valuations for AI-related names, which have caused a selloff in the tech sector on and off over the past week. Wall Street call: TD Cowen raised its Broadcom price target to $405 from $370 ahead of the company’s earnings release next month. Analysts cited growing AI spend by hyperscalers, who have raised their forecasts for capital expenditures. OpenAI’s flurry of investment deals, according to TD Cowen, played a role in the PT hike, as well. The ChatGPT maker has announced partnerships with Nvidia, Amazon , Microsoft , and Oracle , which are worth billions of dollars and will further expand computing capacity and secure more chips. The thought is that some of that spending will go to Broadcom’s business. TD Cowen, however, argued that there will be a “high bar” this quarter for chipmakers like Broadcom, given the stock’s premium on the assumption of unrelating demand for its custom chips. “We believe Broadcom is likely to deliver strong numbers but likewise believe this is well-understood,” the analysts, who maintained a buy rating on shares, wrote. Moving forward, TD Cowen analysts said Broadcom stock will be driven by revenue expectations for the second half of 2026 and beyond. Cowen doesn’t expect those expectations to change meaningfully during the Dec. 11 print. The firm did acknowledge the potential for a “wild card” update during the post-earnings conference call. Up next: Club holding Cisco Systems will post quarterly earnings after Wednesday’s close. Fellow Club name Disney will report its quarter Thursday morning. Outside the portfolio, other notable releases before Thursday’s open include Brookfield , JD.com , and Aegon . On Thursday evening, quarterly results from Applied Materials are on the docket. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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