At four years old, the AI boom showed no signs of losing its momentum. Earlier this year, SpaceX (SPCX) took advantage of the market’s receptiveness with its IPO. After briefly slumping following the IPO, shares are on the rise.
SPCX stock closed at $171.92, up by 15.2% on the week.
In the chip sector, Advanced Micro Devices (AMD) and NVIDIA (NVDA) led Nasdaq’s (QQQ) record closing high. NVIDIA’s GPU chip sales will flourish even if AI hardware sales lose momentum. The backlog for any AI-related hardware is several quarters.
Anthropic plans to IPO within the next few weeks. It has a narrow window of opportunity to maximize its stock valuation. In contrast, OpenAI does not plan to list shares this year. Although both chatbot suppliers have losses in the billions, OpenAI’s cash burn rates might scare markets.
Shares in OpenAI’s biggest backers have mixed performance. Oracle (ORCL) shares rose slightly from July’s lows while SoftBank (SFTBY) shares are trending lower. Still, the firm owns most of Arm Holdings (ARM).
ARM stock doubled from its 52-week low.
Consulting firms like Accenture (ACN) are hot stocks. So are software firms like Salesforce (CRM), despite pulling back since September. Shares sold off on the fear that AI would take their market. That fear subsided.
In that space, markets are in a contradiction. Either AI might replace software with agentic AI, or it is unable to take that market.
