Tech Stocks Led by AI and Virtual Currency
This year, the tech companies listed on the U.S. stock market that experienced the most significant stock price increases were those closely associated with artificial intelligence (AI) and virtual currency. The recovery of the IPO market, fueled by interest rate cuts, has led to several tech companies going public. While traditional software companies such as fintech and travel apps saw their stock prices decline after listing, AI and virtual currency companies have seen explosive growth. This is attributed to the influx of investment funds into these industries, which have transitioned from the potential stage to demonstrating actual sales and market influence.
CoreWeave: A Data Center Operator with Strong Ties to AI
One of the most talked-about companies this year is ‘CoreWeave.’ The company went public in March and its stock price surged from an initial public offering (IPO) price of $40 to a peak of $187 before closing at $104.01 as of the 7th (local time). Despite a subsequent decline, the stock still rose 160% compared to the IPO price. CoreWeave operates as a data center provider, supplying AI-dedicated infrastructure by purchasing NVIDIA’s graphics processing units (GPUs) in large quantities. It lends GPUs to companies that want to create and operate AI. Unlike companies like Amazon Web Services (AWS) and Google Cloud, CoreWeave provides computational resources optimized for generative AI. The company has gained attention for its close relationship with NVIDIA, the leading AI semiconductor company. NVIDIA has invested in CoreWeave and prioritizes GPU supply to the company.
Circle: The Stablecoin Issuer with Explosive Growth
The company with the highest stock price increase is the stablecoin issuer ‘Circle.’ Its stock price has risen 233% compared to its June listing. Circle issues and operates the stablecoin ‘USDC,’ which holds a 1:1 value with the U.S. dollar. It backs the issued coins with an equivalent amount of U.S. dollars in cash and short-term U.S. Treasury bonds, with the interest generated from these reserves being its main source of revenue. While other dollar stablecoins have opaque collateral structures, Circle is evaluated as being friendly to the U.S. financial regulatory environment because it holds only safe assets like cash and government bonds as collateral. For this reason, USDC has been adopted as a payment method by Visa and PayPal, and BlackRock participates in the management of its reserves. In particular, following the Trump administration’s enactment of the so-called ‘Genius Act’ in July, which brings stablecoins into the formal financial system, expectations for the expanded use of USDC have also driven up Circle’s stock price. The market capitalization of USDC has also grown from approximately $45 billion at the beginning of the year to $75.8 billion as of the 10th.
Other Notable Performers
Blockchain-based lending company Figure recorded a 46% stock price increase, while virtual currency exchange Bullish saw a 22% rise. Figure has enhanced transparency and speed by replacing loan information with blockchain. Receiving mortgage loans for property purchases through Figure takes 10 days, which is 3 to 6 times faster than traditional financial institutions. Unlike general exchanges that match orders between users, Bullish is an institutional virtual currency exchange that directly supplies liquidity to reduce price volatility.
Building Tech Infrastructure is Key
The common characteristic of companies that succeeded in this year’s IPOs is that they all focused on building infrastructure or services. Over the past 2-3 years, the IPO market favored companies with stable revenue models, such as subscription-based software (SaaS) and consumer goods. However, as AI and virtual currency began to generate direct sales and show growth potential, companies laying the infrastructure for these sectors have gained market attention. Companies with infrastructure that grows alongside the expanding AI and virtual currency markets are being recognized for their clear growth potential in the market.
In contrast, traditional consumer tech companies faced difficulties. Representative examples include fintech company Chime (-25%), ticket resale company StubHub (-17%), and travel tech company Navan (-29%). Even design tool company Figma and security company Netskope, which saw stock price increases outside of AI and virtual currency, were able to maintain their upward trends as they are part of the AI ecosystem. U.S. IT media outlet TechCrunch stated, “Investors prioritize companies that demonstrate the advantages and innovations of AI,” and “Banks expect this trend to continue until 2026.”