The AI revolution needs more funding: Net equity issuances are estimated to rise to ~$200 billion in 2026 and surge +500% YoY in 2027, to ~$1.2 trillion, according to JP Morgan. This includes IPOs, secondary offerings, and other share sales after accounting for buybacks. Combined, this would be the largest 2-year period of net stock issuance since at least the late 1990s. This marks a sharp reversal from ~$12 trillion of shares repurchased in the previous 20 years, shrinking the available stock supply consistently each year. The surge is being driven by SpaceX's, SPCX, $85.7 billion IPO, the largest in history, alongside upcoming mega IPOs from OpenAI and Anthropic. At the same time, Alphabet, GOOGL, Meta, META, and Oracle, ORCL, are expected to raise hundreds of billions in secondary share offerings to fund their AI spending plans. We are about to witness a historic wave of US equity issuance.(The Kobeissi Letter)