Scott Galloway, a professor at NYU and co-host of the Prof G Markets podcast, has raised concerns about the potential impact of upcoming AI initial public offerings (IPOs) on established companies like Tesla and Nvidia. He predicts that the anticipated IPOs, including SpaceX’s listing at $135 per share, could lead to significant declines in the stock prices of these tech giants within the next 12 to 24 months. Galloway likens the current AI boom to historical technology bubbles, suggesting that the influx of new IPOs could trigger a market correction similar to those seen during the railroad and dot-com eras.
The upcoming IPO wave is expected to require around $400 billion in new equity, with SpaceX alone valued at $1.77 trillion. This massive capital influx may force investors to sell shares of existing companies, such as Tesla and Nvidia, to fund their investments in the new offerings. Co-host Ed Elson highlighted that this rotation could affect the stock prices of established firms, while Allianz Global Investors strategist Stefan Rondorf argued that the reallocation of funds might not lead to significant disruptions.
Market predictions indicate that SpaceX is favored to become the largest IPO of 2026, with a strong chance of exceeding its initial valuation. As the IPO landscape evolves, the performance of these new listings will be closely watched, particularly for their implications on the broader market and established tech companies.
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