Exploring how trillion-dollar market debuts are challenging traditional rules — and why investors must rethink benchmark alignment.

Author: Jeff Gabrione, CFA®

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Investors are understandably enthused by the initial public offerings (IPOs) of SpaceX, OpenAI and Anthropic. It provides investors with opportunity to gain a direct stake in companies at the forefront of artificial intelligence (AI) development. SpaceX went public on June 12, while OpenAI and Anthropic recently confidentially filed with the SEC for IPOs expected to occur later this year.

What's particularly notable about these public offerings is their size. SpaceX reached a market capitalization of over $2 trillion on its first trading day, while OpenAI and Anthropic could achieve a $1 trillion valuation, based on their recent private market valuations. As such, as they gain admission into large cap market indexes, these IPOs will play a significant role in the US equity markets and market indices commonly used as performance benchmarks by investment managers.

In this article, Jeff Gabrione, CFA®, Area Senior Vice President, Head of Public Markets Research, dives into how different indexes are keeping up with mega-cap IPOs, highlighting the following topics:

  • Giant AI-related IPOs and how they are changing the market
  • Changes the major indexes have taken
  • Aligning a portfolio with the new IPO landscape

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Author Information

Jeff Gabrione, CFA®

Jeff Gabrione, CFA®

Area Senior Vice President, Head of Public Markets Research

  • Rolling Meadows, IL
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