Can the Anthropic IPO Save the AI Rally?

AI stocks fell for the second day in a row on Friday as investors continue to assess the fallout from Jensen Huang's sudden resignation as CEO of Nvidia.

More than any other business leader, Huang was at the center of the AI boom, a ubiquitous advocate for the revolutionary technology and a visionary strategist, whose company dominates the market for AI chips with roughly 90% market share of data center GPUs.

Huang's absence leaves a question mark hanging above not only Nvidia but also the broader AI sector, as Nvidia has become a financial backstop for an array of companies including neoclouds like CoreWeave and research labs like OpenAI. Those relationships and its so-called "circular financing" are expected to face more scrutiny with Huang out of the CEO chair, and Nvidia could scale back its widespread ambitions as it looks to reduce its financial exposure.

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