Cerebras Systems Inc., a tech company in Silicon Valley that makes chips used to train artificial intelligence models, began trading on the Nasdaq stock exchange last Thursday following a much-anticipated initial public offering.

What a debut. The share price jumped 68 per cent on the stock’s first day of trading, leading to some serious FOMO for those of us sitting on the sidelines.

Welcome to the 2026 IPO frenzy, where new issues that tap into the AI theme are about to set records.

Cerebras, which was valued at US$60-billion last week, is far from being the biggest name among anticipated IPOs.

SpaceX, Elon Musk’s rocket company which also has an AI component, is expected to go public on June 12, according to a report in The Wall Street Journal. The company could raise US$80-billion through its IPO – a record haul – implying a US$1-trillion valuation.

OpenAI and Anthropic, two leading AI companies with popular chatbots, could go public later this year with implied valuations of US$852-billion and US$900-billion, respectively.

Companies don’t go public as an act of kindness.

They do it to tap capital markets, which can give them fuel for greater growth. Going public also allows early investors, including owners and private-equity firms, a way to sell their shares on the open market.

It’s little wonder, then, that companies generally time their IPOs when market conditions are favourable. With AI-mania in full swing right now, some tech firms can get top dollar when they list.

“Just over the past two years, we’ve been in a very strong bull market. And whenever there is more risk appetite, that’s when you tend to see more participants willing to go into new opportunities,” said Hiren Amin, host of Trading Insights at TD Direct Investing, Toronto-Dominion Bank’s self-directed brokerage.

The good news for investors who want a piece of the action? You don’t have to be a billionaire insider to participate (though it helps).

A company that goes public will generally allocate shares to underwriters or investment banks, who then distribute them to a syndicate – which includes asset managers and brokerages. From there, some shares will find their way to interested individuals, though they are often affluent investors with close relationships with brokerage firms.

The process can be more accessible. TD’s New Issue Centre, for example, will notify clients of upcoming IPOs, along with bond and note offerings. Put in an order online, and that new stock could be yours.

Regardless of your banking relationships, though, small investors might still face obstacles in gaining access to the world’s most anticipated IPOs.

Investors are generally required to order board lots – or 100-share increments – which can be a big bet if the stock is pricey. Conversely, if a new listing is popular, you might not get anywhere near the number of shares you wanted.

But the biggest challenge is that Canadian investors might not get access to new U.S. listings: New shares will usually go to U.S. brokerages, often for regulatory reasons. Canadian investors might have to wait until the new shares start trading on exchanges. If there is an initial pop in the share price, you could miss out.

Another approach? You can buy an exchange-traded fund that will give you a diverse exposure to new listings.

The Renaissance IPO ETF (the ticker is IPO in New York) holds dozens of new stocks – currently 47 – that have been trading for less than three years. Cerebras, OpenAI, SpaceX and Anthropic should end up here.

A final word on IPOs: They aren’t for everyone.

Despite several examples of eye-popping gains on the first day of trading, new listings can be volatile and even disappointing over time.

That’s because these companies may be issuing shares under ideal conditions, such as the current hype surrounding AI. When the hype fades, so can share prices.

Jay Ritter, emeritus professor at the University of Florida’s Warrington College of Business − and widely regarded as “Mr. IPO” for his extensive work on the subject – in a 1991 paper found that U.S. IPOs significantly underperformed comparable firms three years after going public.

The reason? New issues are often unproven fads.

And that stands today. The Renaissance IPO ETF has underperformed the S&P 500 by 11 percentage points over the past three years.

“These are essentially bets on infant companies or in hyper-growth phases. There’s not a lot of clarity around their financial track records,” said Mr. Amin from TD Direct Investing.

His advice to investors: “Don’t get caught up in IPO hype. That should never be a substitute for doing due diligence.”

Are you eagerly anticipating any IPOs? Let me know your approach to investing in new listings at dberman@globeandmail.com.