AI-linked IPO surge raises concern over market strain

Stock market listings have surged in 2026, led largely by artificial intelligence companies, but the size and concentration of the deals have raised questions about whether markets can keep absorbing them.

In the first half of 2026, companies raised $194 billion through stock market listings worldwide, according to figures from consultancy EY cited by the source. That was triple the amount from the same period in 2025 and more than the total for all of last year.

Most of the money was raised in the United States, with China also playing a significant role. The $86-billion listing of SpaceX shares in June accounted for nearly half of the global total.

Equity markets have not seen similar activity since central banks eased corporate financing conditions as part of efforts to support economies hit by the Covid-19 pandemic. Matthew Kennedy, a senior strategist at Renaissance Capital, said demand was heavily concentrated in a few areas, including AI, technology, aerospace, defence and possibly biotechnology.

Technology companies need large sums to develop and deploy AI. The source said debt markets and private financing cannot meet all those needs. Philippe Kubisa of PwC France said investors believe AI answers a long-term economic need and that now is the time to invest.

Eight of the 10 largest initial public offerings since the start of the year have taken place in the United States, with half on the Nasdaq, which is known for technology stocks. Cedric Garcia of EY said financial deregulatory measures under Donald Trump had helped listings, and said some companies wanted to list before the November midterm elections in case a Democratic victory threatened those measures.

The second half of the year could bring possible large listings from OpenAI and Anthropic, two leading US AI startups.

AI is also driving listings by Chinese companies. The source also links the trend to tighter capital movement restrictions amid continued tensions between Beijing and Washington. Garcia said Chinese companies that might previously have raised funds in the United States were now turning to Hong Kong.

Hong Kong's exchange has raised $48 billion since January and is on course for its best performance in five years, according to PwC. Victory Giant, a supplier for Nvidia, raised $3 billion in a listing that ranks fourth worldwide for 2026. Chinese AI startups including Deepseek and Moonshot AI, as well as Baidu's chip unit Kunlunxin and AI infrastructure connector maker Zhongji Innolight, could follow.

Some market participants are concerned that the AI-driven momentum could be a bubble. Stocks linked to the sector have been repeatedly shaken by such fears in recent months. Kubisa said very large deals can drain market liquidity and create more supply than demand, weighing on prices. Garcia said listing flows could dry up if a bubble burst or prices stayed in a prolonged decline.

SpaceX's share price has already fallen below its initial listing value since mid-July, according to the source.

Outside China and the United States, IPO activity remains weak, especially in technology. Europe, the Middle East and Africa have raised $16 billion so far, little changed from last year. Europe has seen some activity in defence, including the Amsterdam debut of Czech arms group CSG at $4.47 billion, the third-largest deal worldwide since January.