US IPO Weekly Winners & Losers

We’ve said it before: If you’re interested in AI, just watch the IPO market.

Tempus AI (Nasdaq: TEM) grabbed headlines this week, filing for a deal we estimate could raise more than $500 million. The medical diagnostics company sells genomic testing products, as well as the data they generate.

Tempus lays out a bold vision where its AI models process massive amounts of data to accurately diagnose patients, recommend treatments, and even develop the prescribed therapies.

For now, its own AI applications account for less than 1% of revenue. And the fact that it added "AI" to its name a few months ago brings up memories of the late 90’s, when companies added “.com” to their names to boost IPO interest. Still, AI tech has made data the new oil, and Tempus boasts one of the world’s largest libraries of clinical and molecular oncology data.

In private company news, space exploration company SpaceX is reportedly considering a private share sale that would value it at an eye-popping $200 billion. The takeaway: Investors are willing to award elite valuations to elite companies.

Just one IPO priced before the short Memorial Day week. Insurer Bowhead Specialty (NYSE: BOW) upsized, priced above the range, and climbed +40% in its debut. We’ll see if the strong reception encourages other insurance plays to test the waters, like 2023 IPO filer Aspen Insurance.

Markets bounced around after the release of the Fed’s May meeting minutes this week. The IPO Index finished up +0.8%, outpacing the S&P 500's flat return. Solar equipment maker Nextracker was the winner, rising +28.4%. Assisted driving tech developer Mobileye traded off -10.2%.