While the Rest of the Market Focuses on the Anthropic IPO, These Are My Top 2 Stocks to Buy in November

The author favors Nvidia and Broadcom over a prospective Anthropic IPO, citing their established AI-chip businesses and supplier relationships with Anthropic. The article argues that if Nvidia reaches next year's earnings projections and is valued at 30 times trailing earnings, its stock could rise more than 100%; Broadcom would need to nearly double to reach that valuation a year from now. These are the author's estimates and investment opinions, not reported results or guaranteed returns.

Analysis

The key economic question is not whether Anthropic grows, but which suppliers capture durable dollars as workloads shift from training toward inference. That mix change could favor custom silicon on predictable, high-volume workloads while preserving NVIDIA’s value where flexibility, software compatibility, and rapid model iteration matter. Broadcom’s exposure is indirect: its upside depends on Google and other customers winning deployments and continuing to use Broadcom for design and implementation. Google may capture much of the TPU economics itself, so TPU adoption is not automatically equivalent to proportional AVGO earnings upside.

The article’s valuation case is fragile: a selected P/E multiple applied to forward estimates is not a margin of safety unless those estimates survive revisions. Verify the forecast period, earnings definitions, and estimate trend before treating claimed upside as investable. An IPO-driven supplier bid could arrive quickly and reverse if Anthropic’s listing slips, prices aggressively, or its prospectus shows heavy spending without credible unit economics.

Over 1–3 months, the useful catalysts are confirmed listing documents, disclosed compute commitments, and supplier guidance—not IPO enthusiasm alone. Over 6–18 months, watch workload mix, TPU utilization, and evidence that custom silicon scales beyond a small number of customers. A contrary risk to the bullish framing is that hyperscalers’ in-house silicon reduces the addressable market for merchant GPUs, even as it creates design opportunities for Broadcom. The thesis weakens if NVIDIA data-center growth or Broadcom AI-related commentary decelerates, or if Google’s TPU adoption fails to translate into sustained Broadcom engagement.

Key Decisions for Investors

• Do not buy NVDA or AVGO solely ahead of an anticipated Anthropic IPO; the timing and supplier read-through are uncertain. Treat the IPO as a volatility catalyst, not proof of incremental orders.
• For investors seeking AI-chip exposure, consider staged entries in NVDA and AVGO rather than chasing a pre-event move. Add only if subsequent guidance and estimate revisions confirm demand; cap risk if either stock rallies materially without improved fundamentals.
• Keep GOOG on the same diligence list as AVGO: Google can benefit from lower-cost TPU workloads, but may retain more value internally than a simple supplier narrative implies. Verify Broadcom’s continuing role and the scale of TPU deployment before assigning AVGO incremental earnings credit.
• Falsification checks: supplier guidance or estimate revisions that show slowing AI-related growth, weak TPU utilization or deployment, or evidence that custom-chip adoption is displacing GPU demand faster than NVIDIA can offset it. If these emerge, reduce exposure rather than relying on a chosen forward P/E multiple.