JP Morgan Forecasts $1.2 Trillion Net Equity Issuance by 2027 Driven by AI
JP Morgan estimates net U.S. equity issuance could surge to ~$1.2 trillion in 2027, marking a historic reversal from two decades of net buybacks. The wave is fueled by mega IPOs from SpaceX, OpenAI, and Anthropic, plus large secondary offerings from Alphabet, Meta, and Oracle.
According to JP Morgan, net equity issuances in the U.S. are projected to rise to roughly $200 billion in 2026 and then surge 500% year-over-year to approximately $1.2 trillion in 2027. This includes IPOs, secondary offerings, and other share sales net of buybacks. The combined two-year period would be the largest net stock issuance since at least the late 1990s.
This marks a sharp reversal from the prior 20 years, during which about $12 trillion worth of shares were repurchased, steadily shrinking the available stock supply. The upcoming boom is being led by SpaceX's IPO, estimated at $85.7 billion (ticker: SPCX) — the largest in history — as well as anticipated IPOs from OpenAI and Anthropic.
At the same time, tech giants Alphabet ($GOOGL), Meta ($META), and Oracle ($ORCL) are expected to raise hundreds of billions through secondary share offerings to fund their AI spending plans. JP Morgan's analysis points to an unprecedented wave of U.S. equity issuance that could reshape market supply dynamics.
Source: The Kobeissi Letter