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The IPO Market Is Heating Up, Driven By AI - SoFi Brings Regular Investors Access

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By Meg Flippin, Benzinga

AI is driving the IPO market. Learn how to get access to the next red-hot offering with SoFi. 

One only has to look at what’s been going on in the IPO market for evidence. In May, an AI chip maker that went public raised over $5 billion. Then in July, a leading supplier of high-bandwidth memory - a critical component for AI accelerators - debuted on the public market. Its stock rose by double digits, underscoring the investor demand for AI-facing companies. The company now has a market cap around $1 trillion. 

AI IPO Market Heating Up 

There are several reasons why AI is driving the IPO market and why retail and institutional investors are clamoring to get in. AI has already proven it boosts productivity, creates jobs, builds new consumer markets, streamlines workflows and accelerates digital transformations.

It is also proving not to be a flash-in-the-pan type investment theme, where these companies with multi-billion dollar valuations go bust a year later. After all, market forecasts call for the AI ecosystem to continue to experience strong growth, with AI spending increasing to $4.7 trillion in 2029 from $1.8 trillion last year. 

SoFi levels the playing field, bringing AI IPOs to regular investors. Click here to learn how. 

SoFi Brings AI IPOs To Investors

Amid all this demand for access to AI companies going public, there is a bit of an imbalance. While all types of investors want to invest in AI startups, traditionally it’s largely the institutions, high-net-worth individuals or investors with connections who get access to these red-hot IPOs. Retail investors can typically either buy shares through a mutual fund or ETF if they are lucky, or buy the stock with everyone else after it debuts.

But that is changing thanks to platforms like SoFi. SoFi enables everyday investors to request pre-IPO shares with no account minimums. Because of its large user base and strategic partnerships, SoFi acts as part of the underwriting syndicate, getting access to IPOs directly from underwriters and distributing those shares to regular investors. SoFi makes it easy to invest in AI IPOs by allowing users to browse upcoming offerings directly in the app, review the prospectus and submit an Indication of Interest to request a specific number of shares before the company begins public trading.

As the AI IPO pipeline expands, SoFi is in a position to bring more access to regular investors, which is a win-win for everyone. Retail investors have more IPOs to choose from, SoFi has more engaged customers, and companies looking to go public have a wider investor base to allocate shares directly to. For issuers, SoFi acts as a retail distribution channel, enabling companies to allocate shares directly to employees, customers and individual investors as part of their IPO strategy.

The IPO market is heating up, and it has AI to thank in big part. SoFi is giving regular investors access to that and capturing retail demand for issuers. Whether you are interested in chip companies or design enterprises, there’s an AI IPO for that. Ready to get started investing in IPOs with SoFi? Click here to learn how. 

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of losing principal. Key risks include, but are not limited to, unproven management, significant company debt, and lack of operating history. For a comprehensive discussion of these risks, please refer to SoFi Securities' IPO Risk Disclosure Statement. This is not a recommendation and does not constitute an offer of any securities for sale. Investors must carefully read the offering prospectus to determine if an offering is consistent with their objectives, risk tolerance, and financial situation. New offerings often have high demand and limited shares. Many investors may receive no shares, and any allocations may be significantly smaller than the shares requested in their initial offer (Indication of Interest). For more information on the allocation process, please visit IPO Allocation.

Featured image from Shutterstock.

This content was originally published on Benzinga. Read further disclosures here.

This post contains sponsored content and was created in collaboration with a third-party partner. Benzinga is a publisher and does not provide personalized investment advice or act as a broker or dealer. This content is for informational purposes only and is not intended to be investing advice or an offer or solicitation to buy or sell any security.

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