JPMorgan says Wall Street is gearing up for what it sees as a once-in-a-generation wave of AI-driven public offerings.
In a recent interview on JPMorgan’s Making Sense podcast, global head of technology equity capital markets Edward Byun says investors are increasingly viewing upcoming tech IPO candidates as long-term compounders rather than short-term trades.
Byun says the broader setup is historically unusual.
“If you look at many of the potential IPO candidates, I think with the advent of AI and other technology developments, many investors will view these as kind of generational assets that are scaled, that have long-term potential, and also, frankly, remarkable rates of growth that have very rarely been seen in the history of tech capital markets. And therefore, even from a fundamental perspective, it will attract a lot of investors who want to be invested in these companies at IPO and be part of their growth, which will compound over the years to come.”
He also says retail investors have now become a big player in the markets.
“And I think the last point that I touch on as we think about some of these dynamics is really the retail component. And you’re seeing the US retail investor base continue to grow, continue to be a large factor, not just in public market trading, but in many instances in the IPO itself. And when you have many of these very large companies with strong consumer visibility, as well as a broad profile across the public, I think these are names that many retail investors will gravitate to. And even on our platform within JPMorgan, we’re seeing really strong retail demand across many of our deals.”
Byun’s comments come as Bloomberg reports that SpaceX is considering a dual-class share structure for a potential IPO that could raise as much as $50 billion for the rocketmaker later this year.
Against that backdrop, SpaceX is weighing a two-tier share structure that would give select shareholders extra voting power, allowing insiders such as Elon Musk to maintain control even with a minority stake.
According to people familiar with the matter, the proceeds could potentially fund AI data centers in space and a factory on the moon.
Taken together, strong AI enthusiasm on top of massive retail participation creates conditions that allow companies to go public on founder-friendly terms.
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.