2 Looming IPOs With Real Potential—and the Catalysts Behind Them

There’s been much chatter about the IPO boom that’s right around the corner. Of course, SpaceX, Elon Musk’s glorious rocket company, which recently joined forces with xAI, will likely be on tap for a record-breaking IPO this summer. After that, a flood of big-name AI IPOs is set to follow, from OpenAI to Anthropic and others. I think there’s no denying that the most interesting needle-mover of an IPO season is upon us.

The implications on the rest of the market are quite far-reaching. SpaceX is going to be a colossal titan. OpenAI and Anthropic might experience public market booms that also drive valuations off the charts. Of course, it’s hard to tell at this juncture since the AI trade is in a rather lukewarm spot after cooling down to start the year.

In any case, this piece will have a closer look at two underrated IPOs that might stand in the shadows of the AI giants that are ready to send shockwaves through the public markets. They might not be as big, exciting, or headline-inducing, but they’re still great businesses that I think investors might have a shot at getting a reasonable price of admission.

As others save up for that SpaceX, OpenAI, or Anthropic IPO, perhaps the following two are more worth keeping tabs on. Personally, I’ll wait and see how the first couple of sessions (actually, waiting a few months might be the move if IPO season ends up too hot to handle) fare before considering buying.

Databricks

First up, we have Databricks, a firm whose financials are actually in a fairly decent spot for a private company. The firm recently entered positive free cash flow, and with an impressive Lakebase database that could heat up as agentic AI takes off, I do find the name to be a very interesting under-the-radar (at least relative to SpaceX and the AI model makers) name to consider in the first few sessions, especially if the AI IPOs leave investors with less dry powder to throw at the AI-ready data infrastructure play.

For investors looking to place a bet on the agentic boom, I do think Databricks might be an even better bet than the likes of OpenAI, especially given the state of the financials. Add the robust growth into the equation and the potential for growing focus on the agent orchestration layer, and I find Databricks to be a name with structural tailwinds that are too good to pass up.

Of course, the big question is how Databricks will fare as Snowflake (NYSE:SNOW | SNOW Price Prediction) pivots to the lakehouse model. Personally, I think there’s no reason why both data infrastructure plays can succeed as agentics become capable enough to achieve an inflection point.

Canva

Canva stands out as another IPO to keep tabs on in the coming year or so. The company has shifted gears from being a minimalist design app to becoming an AI-powered platform with powerful features and disruptive potential. Indeed, when it comes to agentic creativity, it’s hard to top the likes of Canva, especially as it adds to its roster via strategic M&A.

Even before agents, Canvas was a market disruptor. Now, with its agent-savvy, I think the firm has a real shot at hitting a growth inflection point as it goes after the lunch of some of the incumbents that might be losing their edge. With an IPO likely due for the second half and less heat compared to other looming names on this list, perhaps there’s a chance to get in at a price that’s not all too outlandish. In any case, Canva must also watch out for the model makers themselves as the competitive landscape shifts.

With a valuation in the ballpark of $42-60 billion, perhaps Canva is the name to consider for growth and outstanding ARRs (annual recurring revenues). In my view, Canva is one of the AI tools that could experience a growth spurt as more agents gravitate towards it for creative purposes.