Just like for SpaceX, investors may look to ‘make room’ for AI lab IPOs. These stocks could pay the price.

With the anticipated IPOs of AI labs like OpenAI and Anthropic, investors might feel pressured to clear space in their portfolios, potentially disadvantaging underperforming stocks. This mirrors the investor behavior seen during SpaceX's IPO, where portfolios were adjusted to accommodate the new investment opportunity. The timing could coincide with seasonal tax-related selling, exacerbating the impact on these struggling stocks. The implications are significant as it highlights the intense competition for investment capital in high-growth sectors like AI.