Nvidia, Anthropic and CoreWeave Put the AI Trade to the Test

By Olivia Hart

MarketWatch reported that the Nasdaq finished last week down more than 3%, leaving the AI trade with three immediate tests: Nvidia’s board investigation, Anthropic’s IPO pitch and CoreWeave’s earnings report.

Tech stocks offered only a modest bounce on Friday. MarketWatch said investors still face fresh questions about leadership, valuations and the cost of the AI boom.

What could break the AI trade?

MarketWatch editor in chief Mark DeCambre used the cursed quarterback in “Friday Night Lights” to frame investor unease. In the film, Mike Winchell tells his coach he feels cursed even while his team is winning. The comparison captures anxiety, but DeCambre cautioned that none of the week’s events guarantees another selloff.

Nvidia’s board has launched an investigation after reports that CEO Jensen Huang had a relationship with a woman suspected of spying for China. Nvidia’s response was direct: “Nvidia says it has no reason to believe company secrets were compromised.” MarketWatch gave no scope, timetable or findings for the inquiry.

Anthropic had been expected to begin pitching its blockbuster IPO this week, according to reports cited by MarketWatch. Questions now mount over the timing and the lofty valuation. The source provides no revised schedule or target valuation.

CoreWeave reports earnings Tuesday. MarketWatch described the company as a poster child for the debt-fueled AI boom, though the newsletter supplied no revenue, debt or profit forecasts. Investors have no benchmark in the source for judging Tuesday’s results.

Can early gains relieve the pressure?

MarketWatch said early indications suggest investors may be willing to look beyond the week’s problems and buy. Taiwan’s stock-market benchmark surged nearly 5% Monday, led by chip giant TSMC. Japan’s Nikkei gained more than 2%, while South Korea’s Kospi ended lower.

MarketWatch reported rising futures for the Dow and S&P 500 and inching Nasdaq-100 futures. Nvidia shares fell sharply in premarket trading, with the company’s quarterly earnings report eight days away. Investors still appeared to be finding their footing, and chip stocks traded at their cheapest valuations in nearly seven years, according to the newsletter.

A Bank of America strategist wants to see three things happen before becoming enthusiastic about stocks after last week’s technology selloff. MarketWatch did not identify those three conditions. That omission leaves the central test unresolved: a seven-year valuation low can attract buyers without settling the debate over AI leadership, valuations and financing costs.

Other MarketWatch items extend the watchlist:

• MarketWatch warned: “Think you’re diversified with the S&P 500? You may be making a bigger AI bet than you realize.” The newsletter did not quantify that exposure.
• A separate report examines why some laid-off tech workers may keep their laptops and receive $10,000 to start a business.
• Another article asks how much investors can make in Roth conversions in 2027 under the new tax brackets. The source gives no dollar limit.

Monday’s gains and lower chip valuations do not settle the risks.

What can Berkshire’s $357 billion cash position do?

Berkshire Hathaway has enough cash to buy just about any American company, totaling $357 billion. Last quarter, Berkshire spent $9.6 billion repurchasing its own shares. MarketWatch’s Steve Goldstein found something else in the company’s latest earnings that he said may warrant investor attention, although the newsletter did not explain his finding.

The source says nothing about Berkshire using that cash to cushion losses in technology shares. Its buybacks show where capital went last quarter, not where it may go next.

Berkshire has ample cash, but the source reports no transaction or hedge connected to the AI selloff.

What should annuity buyers check first?

MarketWatch described an adviser’s recommendation that a soon-to-be retiree put some savings into a five-year annuity paying 5.75%, supposedly with no fees. The publication’s Alessandra Malito asked financial planners what might be missing from the adviser’s pitch and what anyone considering an annuity should ask first. The source identifies neither the adviser nor the savings amount, and it does not specify the payment structure behind the rate.

A separate case shows why a headline rate needs context. After 30 years of marriage, a woman’s husband inherited $500,000. She wants to use some of it to fix their aging house and take a trip to Italy. He is unwilling to spend at the moment. The Moneyist examines the dispute over the unexpected windfall, although the source offers no spending split or resolution.

A 5.75% rate and “no fees” label cannot substitute for the missing terms.

How did a 72-year-old retiree become a Taylor Swift analyst?

Jerry Coats had conventional retirement plans after nearly 50 years in education: travel, family time and a little rest and relaxation. Taylor Swift was not on the itinerary. At 72, Coats now analyzes the pop star’s lyrics with his niece for a podcast audience of 36,000 listeners.

MarketWatch’s Angela Moore describes the shift as an unlikely second act for the former college administrator and scholar. The source does not explain how the podcast began or how it is financed. A 36,000-listener audience is substantial, but the business details remain unspecified.

The week’s clearest test comes on Tuesday, when CoreWeave reports, followed within days by Nvidia’s quarterly earnings. Anthropic’s IPO timetable and Nvidia’s board inquiry remain unresolved in the source. Investors have tentative regional buying and a seven-year valuation low; neither settles the AI trade’s central questions.