SpaceX and OpenAI IPOs could push the AI trade deeper into bubble territory: Chart of the Day
Key takeaways
- SpaceX and OpenAI would ask investors to pay for growth years into the future, while rising yields make that wait more expensive.
- The inflation backdrop is already close to BofA’s danger zone.
- Headline inflation, as measured by the Consumer Price Index, rose 3.8% in April, putting it within sight of the 4% threshold BofA flags as historically rough for stocks.
Space X and Open AI IPOs could push the AI trade deeper into bubble territory: Chart of the Day Jared Blikre Mon, May 25, 2026 at 7:00 PM GMT+7 2 min read SPAX.PVT OPAI.PVT BAC Mega initial public offerings from Space X (SPAX.PVT) and Open AI (OPAI.PVT) could push the artificial intelligence trade deeper into bubble territory — just as rising yields make investors more demanding about growth that may take years to arrive.
Bank of America’s Michael Hartnett estimated that adding mega IPOs to today’s AI leaders could push market concentration from 40% currently toward 48% of US market cap, above the peaks of the Roaring ’20s, Nifty Fifty, Japan ’80s, and dot-com bubble — though still below the railroad boom of the 1880s.
That is where the bond market comes in. SpaceX and OpenAI would ask investors to pay for growth years into the future, while rising yields make that wait more expensive.