LIVE MARKETS-Melius Research warns of severe fallout as Anthropic "eats everything"

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

MELIUS RESEARCH WARNS OF SEVERE FALLOUT AS ANTHROPIC "EATS EVERYTHING"

The cybersecurity initiative Anthropic launched on Tuesday underscores that no software firm is beyond the reach of the AI heavyweight, analysts at Melius Research write.

The company, whose product updates have at times sparked sweeping sell-offs in technology stocks, partnered with several Big Tech firms for its latest push.

As part of the push, select organizations will be allowed to use the startup's "Claude Mythos Preview" AI model for defensive cybersecurity work.

"Anthropic is eating everything," analysts at Melius write. "The market is getting it right in SaaS (software-as-a-service) -- no platform is safe."

The commentary suggests that AI is being viewed as a disruptive force that could cannibalize parts of the software industry and prompt investors to reconsider which business models are sustainable.

SaaS players have lost $1.4 trillion of market value since January 2025, the research firm writes.

The selloff in technology stocks has also accelerated in the wake of the Middle East conflict, with high-flying firms such as Microsoft MSFT.O and Meta META.O losing 23% and 13% so far in 2026.

Melius warns that the pace at which Anthropic is adding revenue implies that the fallout for incumbent companies could be swift, and catch management teams off guard.

Nvidia NVDA.O, however, appears to be one of the clearest beneficiaries, including through Anthropic-related chip demand, the research firm says.

Nvidia's shares have fallen about 3% so far this year.

(Niket Nishant)

EARLIER ON LIVE MARKETS:

BORROWING COSTS DIP, BUT NOT BY ENOUGH: YEAR-OVER-YEAR MORTGAGE DEMAND TURNS NEGATIVE CLICK HERE

HORMUZ CRYPTO TOLLS RAISE QUESTIONS FOR THE DOLLAR CLICK HERE

WALL STREET INDEXES UP MORE THAN 2% EARLY, WITH NASDAQ IN LEAD CLICK HERE

US FUTURES JUMP ON IRAN CEASEFIRE; S&P 500 EYES KEY TECHNICAL LEVELS CLICK HERE

TIME TO BREATHE? CLICK HERE

EU BANKS' EARNINGS OUTLOOK STURDIER THAN SHARE PRICES CLICK HERE

STOXX EYES BIGGEST DAILY SURGE IN A YEAR CLICK HERE

BEFORE THE BELL: MIDEAST TRUCE LIFTS EUROPEAN FUTURES 5% CLICK HERE

TWO WEEKS TO BREATHE CLICK HERE