Scottish Mortgage share price has staged a strong breakout to a record high, supported by the ongoing recovery in its top portfolio companies. The stock has jumped to 1,645p, up about 40% this year and nearly 50% from its lowest point in 2026. It has also formed a cup-and-handle pattern, which points to further gains in the near term.
Scottish Mortgage stock jumps ahead of Anthropic IPO
SMT stock has done well in the past few months as investors focused on the upcoming Anthropic IPO. Anthropic accounts for 2.9% of its portfolio, a figure that may jump in the coming months when the company goes public.
The company is expected to raise over $100 billion at a $2 trillion valuation, making it the biggest IPO on record after SpaceX. Historically, as we saw with SpaceX, companies initially jump after the IPO as investors rush to buy.
A key challenge, however, is that stocks tend to drop after the initial surge. Another one is that the company continues to burn substantial amounts of cash. Its S1 document showed that its loss jumped to over $42 billion last year.
Anthropic has also made substantial spending commitments. It reached a $50 billion deal with Fluidstack, $45 billion with Nscale, $11.6 billion with Akamai, and a $1.25 billion a month with SpaceX. This spending means that the company may experience some substantial cash burn.
Top portfolio companies have jumped
Scottish Mortgage shares have performed well, supported by strong gains across the companies in its portfolio. SpaceX, its largest holding, jumped to $171, its highest level since June 22nd. The stock has surged 65% from its lowest point this year.
The rally may continue, as the analyst consensus price target is $218. Of the 37 analysts covering the stock, 30 have a buy rating, and 7 have a hold rating. The most optimistic target is $800.
Taiwan Semiconductor (TSMC) stock jumped to a record high of $485, up by over 30% from its lowest level in July this year. The company is benefiting from the ongoing AI boom that has led to a surge in revenue and profits. Its second-quarter revenue jumped by 33.7% to over $40.2 billion.
Nvidia, another top company in Scottish Mortgage’s portfolio, jumped to a record high of $240. It has soared by 27% from its lowest point in July, with its valuation nearing the crucial level of $6 trillion. Other top companies like MercadoLibre, ASML, and Shopify have all jumped.
Scottish Mortgage share price formed a cup-and-handle pattern
The weekly chart also explains why the stock has soared. A closer look shows that it formed a cup-and-handle pattern, which is made up of a cup-and-handle pattern, which often leads to a strong continuation. The upper side of this cup was at $1,533, its highest point in November 2021.
It then formed the handle section between June and July. It has now moved above the cup’s upper side, confirming the bullish breakout.
Scottish Mortgage has moved above all moving averages, while the Average Directional Index (ADX) has moved to 26, a sign that the trend is strengthening. Therefore, the stock will likely continue rising, potentially to $2,000 in the coming months.
