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2026-05-22 23:39:26
[Bank of America Strategist Warns of Market Concentration Exceeding Bubble Levels Due to SpaceX and Other Mega-IPOs] Bank of America strategist Michael Hartnett stated that the proposed mega-IPOs of SpaceX and OpenAI could push the weighting of tech stocks in benchmark stock indices to levels seen during market bubbles. Elon Musk's SpaceX has planned the world's largest IPO, while ChatGPT developer OpenAI aims to go public before its competitor Anthropic. These massive stock offerings will fuel optimism surrounding tech and AI stocks, which has already driven one of the narrowest rallies in decades. Hartnett stated in a report, "Strong price action, retail frenzy, declining volatility…it smells too much like a bubble." He added, "Adding mega-IPOs to the AI giants could easily push market concentration above (approximately 48%) the levels of the Roaring Twenties, the 'Nifty Fifty' of the '80s, Japan in the '80s, and the tech, media, and telecommunications bubble of the '90s."
