
How to trade the AI IPO boom without chasing the hype

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Amid excitement over AI IPOs like SpaceX and OpenAI, experts advise caution against chasing hype. Research indicates most IPOs trade below their first-day low. A recommended strategy is waiting for an 'IPO base'—a 1-5 week period of consolidation post-listing. Breakouts from this base on high volume can signal institutional interest and potential gains, as seen with Google and CoreWeave, though risks remain, exemplified by Spotify's initial failure.

