"It's been quite quiet on the IPO front in recent quarters, but this may very well be the calm before the storm, especially if 2026 marks the year when a number of the frontier AI model makers (think OpenAI and Anthropic) look to go public."
"At this juncture, the AI trade has entered a rather volatile period. Add the Iran situation into the equation, and it's become a bit of an unnerving time to put any sort of new money to work, especially in a risk-on kind of stock with heavy expenditures and nothing but question marks surrounding what kind of return we can come to expect."
"Either way, the longer this AI fatigue lasts, especially for the Magnificent Seven, the higher the odds that big-name AI IPOs will be pushed out further down the road, at least in my humble opinion. Of course, I could be wrong, and some of the biggest IPOs Wall Street has ever seen could still be a go."
The IPO market has been quiet recently, but 2026 could bring significant activity as frontier AI model makers consider going public. Current market conditions present challenges, with AI stocks experiencing volatility and investor fatigue affecting valuations. The geopolitical situation and uncertainty about AI returns have made investors cautious about deploying capital in high-expenditure AI companies. However, this volatility may present contrarian opportunities. OpenAI and Anthropic are positioned as potential major IPO candidates, with OpenAI potentially targeting a trillion-dollar valuation. The timing of these IPOs remains uncertain, with 2027 as an alternative possibility. Major AI IPOs could potentially revitalize lagging AI stocks and reshape market dynamics.
Read at 24/7 Wall St.
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