Scottish Mortgage stock forms a bullish pattern amid Anthropic and SpaceX tailwinds

Scottish Mortgage stock continued its strong rally, reaching its highest point since July 10 as investors reacted to the ongoing artificial intelligence comeback and the potential $2 trillion valuation for Anthropic. SMT jumped to 1,453p, up by over 12% from its lowest point this month.

Scottish Mortgage stock jumps amid the SpaceX recovery

SMT stock has rebounded in the past few days, helped by the ongoing SpaceX rebound. After bottoming at $104 earlier this month, it has bounced back to nearly $150, helped by its strong revenue growth.

The earnings report showed that revenue jumped by 72% in the second quarter, driven by its AI and connectivity business. Analysts now expect that its annual revenue will be $44 billion this year, followed by $95 billion next year.

The stock also rebounded as analysts sounded optimistic about the company, with Morgan Stanley predicting that it will jump to $300 in the next 12 months, citing the ongoing AI boom.

Further, the rebound is because investors are buying the dip following the employee lock up expiration that happened last week.

SpaceX is an important part of Scottish Mortgage because it accounts for over 17% of its portfolio.

Anthropic could file a $2 trillion IPO

Scottish Mortgage Trust share price also jumped as investors reacted to the new reporting on Anthropic. According to the FT, Anthropic, the creator of Claude, is expected to file a $2 trillion IPO later this year.

A $2 trillion valuation would make it the biggest IPO ever, overtaking that of SpaceX, which raised $85 billion at a $1.8 billion valuation. It would also be a big deal as the company was recently valued at $900 billion.

Scottish Mortgage is a big investor in Anthropic. According to its website, Anthropic accounts for about 2.8% of its portfolio, and this valuation would vault it into one of its biggest holdings.

Other top constituent stocks are rising

Meanwhile, other companies in Scottish Mortgage’s portfolio have also bounced back in the past few weeks as investors reflect on the earnings season, where big-tech companies vowed to keep spending.

Taiwan Semiconductor has jumped by over 14% from its lowest level in July this year. It is benefiting from the ongoing chip demand since it is the biggest fabrication company in the world.

Nvidia stock has also jumped to $224, its highest level since June 2nd this year and 18% above its lowest level in July this year. It is nearing its all-time high, with most analysts predicting that it will surge past $250 in the near term.

Other top companies in Scottish Mortgage’s portfolio, like Amazon, MercadoLibre, Ferrari, and ASML have also jumped sharply this month.

SMT stock chart | Source: TradingView

Technicals suggest that the SMT stock price has rebounded in the past few weeks, and this trend may continue in the foreseeable future.

The stock has formed a bullish flag pattern, which is made up of a vertical line and a descending channel. It is now in the descending channel and has moved to the upper side.

Therefore, the stock will likely have a strong bullish breakout, potentially to the year-to-date high of 1,562p, which is about 7.40% above the current level.

The alternative scenario is where the stock retreats, potentially to the lower side of the channel at 1,300p, which is about 10% below the current level.