Zoom Video Communications shares jumped after the company disclosed that its early investment in AI startup Anthropic had grown to nearly US$1.3 billion, underscoring how artificial intelligence bets are reshaping the tech sector’s balance sheets.
The company revealed in a regulatory filing that its initial US$51 million investment in Anthropic in 2023 through Zoom Ventures had multiplied around 25 times in value. The investment was originally positioned as a strategic partnership to integrate Anthropic’s Claude AI models into Zoom’s platform.
The stake could rise further as Anthropic reportedly plans another fundraising round as early as next week at a valuation of up to US$900 billion.
The disclosure came as Zoom also reported stronger-than-expected first-quarter earnings. Revenue rose 5.5% year-on-year to US$1.24 billion, while adjusted earnings increased to US$1.55 per share from US$1.43 a year earlier.
Zoom raised its full-year guidance, forecasting adjusted earnings of between US$5.96 and US$6.00 per share on revenue of US$5.08 billion to US$5.09 billion. The company also authorised a US$1 billion share buyback programme.
Several brokerages lifted their target prices on the stock following the results. Morgan Stanley raised its target price to US$105 from US$92, while Rosenblatt Securities increased its target to US$130 from US$115. Benchmark Company also lifted its target price to US$125 from US$121. All maintained their “buy” ratings on the stock.
Zoom shares have gained more than 20% year-to-date as investors increasingly focus on the company’s AI-driven growth strategy.
