Scottish Mortgage Investment Trust shares have surged to an all-time high, propelled by a robust recovery in its major holdings and growing anticipation around the upcoming Anthropic initial public offering. The stock climbed to 1,645p, marking a gain of roughly 40% year-to-date and nearly 50% above its 2026 low. Technical analysis reveals a cup-and-handle pattern, suggesting further upside potential in the near term.
Anthropic IPO: A Catalyst for Scottish Mortgage
Investor enthusiasm has been fueled by the expected IPO of Anthropic, which represents 2.9% of Scottish Mortgage's portfolio. The AI company is reportedly seeking to raise over $100 billion at a $2 trillion valuation, which would make it the largest IPO on record, surpassing even SpaceX. Historically, as seen with SpaceX, such listings often experience an initial surge as investors clamor for shares.
However, there are concerns. Post-IPO stocks frequently retreat after the initial pop, and Anthropic continues to burn significant cash. Its S1 filing revealed a loss exceeding $42 billion last year. Additionally, the company has committed to substantial spending, including a $50 billion deal with Fluidstack, $45 billion with Nscale, $11.6 billion with Akamai, and $1.25 billion per month with SpaceX, which could prolong cash burn.
Portfolio Strength Drives Gains
Scottish Mortgage's performance is also underpinned by strong gains across its portfolio. SpaceX, its largest holding, jumped to $171, its highest level since June 22, and has surged 65% from its yearly low. Analysts see further upside, with a consensus price target of $218; of 37 analysts, 30 rate it a buy and 7 a hold, with the most optimistic target at $800.
Taiwan Semiconductor Manufacturing (TSMC) also hit a record high of $485, up over 30% from its July low, benefiting from the AI boom that boosted second-quarter revenue by 33.7% to over $40.2 billion. Nvidia, another key holding, reached a record $240, up 27% from its July low, with its market cap approaching $6 trillion. Other holdings like MercadoLibre, ASML, and Shopify have also rallied.
Technical Breakout Signals More Upside
The weekly chart shows a cup-and-handle pattern, with the cup's upper boundary at $1,533, its November 2021 high. The handle formed between June and July, and the price has now broken above the cup's rim, confirming a bullish breakout. The stock trades above all moving averages, and the Average Directional Index (ADX) at 26 indicates a strengthening trend. This technical setup suggests the stock could continue its ascent, potentially targeting $2,000 in the coming months.
This article is for informational purposes only and does not constitute financial advice.
