Wall Street sees three AI bubbles testing investors' confidence

The first bubble centers on the anticipated IPOs of Anthropic and OpenAI. OpenAI’s Sam Altman said the company will not pursue an IPO in 2026, leaving Anthropic in the spotlight. Anthropic disclosed third‑quarter revenue of nearly $17 billion, but its growth has slowed and profitability claims rely on adjusted figures. Some investors now discuss a valuation near $1.5 trillion, down from earlier $2 trillion estimates.

The second bubble involves semiconductor stocks that surged earlier in the year but have since fallen 23% from peak levels, reviving dot‑com‑era concerns. The third bubble concerns “neocloud” providers such as CoreWeave, whose debt has risen to roughly $50 billion and whose bonds now yield about 15% after revenue of $4.6 billion and a $1.4 billion net loss in the first half of 2026. Nvidia backs CoreWeave, while Microsoft withdrew from a data‑center deal with Nscale. Analysts from Gartner and major banks warn that the economics of the AI boom may be out of sync with projected revenues, and that a disappointing IPO or continued chip volatility could force a broader market reassessment.