Scott Galloway warns that a SpaceX-style AI IPO wave could jolt already-public AI tech stocks, drawing Tesla, Nvidia and Broadcom into focus

A high-profile warning about what an AI boom could do to public markets is resurfacing as investors look toward a slate of upcoming flotations tied to the artificial-intelligence buildout. Scott Galloway, a professor at NYU and co-host of The Prof G podcast, said that a new round of major AI IPOs could trigger sharp declines for at least one of the next big debuts, and that the fallout could spread to already-listed companies such as Tesla, Nvidia, and Broadcom.

Galloway’s concern centers on the possibility that valuation momentum will outstrip fundamentals as capital pours into newly public growth stories. He argued that within the next 12 to 24 months, one or two of the three companies he referenced could drop 60% to 80%, adding that he does not see how the “momentum” can be sustained.

The setup for the warning is the expected listing of SpaceX, which multiple market reports have framed as part of a broader wave of AI-linked IPOs. In the discussion cited by Benzinga, SpaceX was described as set to list on Friday at a fixed price of $135 per share, while other AI players such as Anthropic and OpenAI were said to have disclosed confidential IPO filings within the past week. (Confidential filings do not guarantee timing or terms, but they can announcement IPO readiness.)

Galloway also compared today’s AI infrastructure rush to earlier technology buildouts, citing how major new “railroad” and dot-com eras produced dramatic price swings and deep drawdowns even for companies that were building transformative technologies. As an illustrative reference point, the discussion noted that Cisco lost more than 90% of its value between 1999 and 2001 and never recovered to prior levels.

The crossfire concept is aimed at companies that already trade as key components of the AI stack. Nvidia is the best-known supplier of graphics processing units (GPUs) used for training and running AI models, while Broadcom has exposure through custom silicon and networking/communications products that data centers use to connect compute. Tesla is included not because it is a traditional “AI chip” vendor, but because markets treat it as a high-beta proxy for AI-related compute and autonomy ambitions.

In the same podcast-linked discussion, co-host Ed Elson estimated that upcoming equity raises could total roughly $400 billion, including SpaceX’s described $75 billion listing, which was characterized as being tied to a reported $1.77 trillion valuation. If a large amount of fresh capital is chasing similar themes at roughly the same time, some investors may rotate, sell into strength, or reprice risk across the sector.

Nvidia’s own recent public communications do not address this prediction directly. The company continues to operate in the data center and AI compute markets that have propelled its stock, and its newsroom emphasizes ongoing product and platform updates across AI, networking, and related platforms. The key point for investors is that even without any company-specific negative news, IPO-driven sentiment can still move the entire “AI complex” through index flows and correlation trading.

Still, the warning’s specifics remain uncertain. Galloway did not propose a concrete mechanism for how the decline would propagate from a specific IPO to specific tickers, and confidential IPO filings can change or stall. Also, SpaceX’s final terms, timing, and demand could differ from what market commentary is currently projecting, which could alter the magnitude and timing of any aftershocks.