BlackRock’s Wei Li: AI IPOs Could Drain $200 Billion From Market Liquidity

Three major US technology offerings SpaceX, OpenAI, and Anthropic could collectively absorb up to $200 billion in market liquidity, according to Wei Li, Global Chief Investment Strategist at BlackRock. Since Li made those remarks, SpaceX has completed its IPO, while OpenAI and Anthropic have confidentially filed for public listings. Despite equity markets trading at record levels, Li remains bullish on US stocks, citing strong momentum driven by the buildout of artificial intelligence. The AI revolution, combined with healthy corporate earnings, should continue to push stocks higher, though interest rate risks remain a key concern. Global data centre spending is projected to reach $6 trillion by the end of the decade, and BlackRock sees “electro tech” including batteries, power electronics, and electric motors as central to AI’s future infrastructure.

According to Li, the current pace of AI-related spending is unmatched by any previous industrial revolution, with technology companies increasingly borrowing to finance their investments.

Equities Outlook

BlackRock remains overweight on emerging market and US equities, which Li says offer the strongest potential for earnings revisions going forward. Earnings forecasts for US IT companies in 2026 have risen sharply — from 30% to 44% — while forecasts for emerging markets have nearly doubled, from under 20% to almost 40%.

While some investors are concerned about the scale of AI investment, Li believes strong earnings momentum addresses those worries. She reiterated that equities remain more attractive than credit and bonds. “This isn’t a rising tide lifting all boats,” Li said, underscoring the selective nature of the current rally.

Energy Security and Inflation

The ongoing US-Iran conflict has heightened demand for energy security, with growing emphasis on resource nationalism, logistics resilience, and data centre protection. The clean technology and utilities sectors are also reshaping market dynamics amid the broader energy transition.

Li cautioned that rising interest rates could make it harder to sustain equity gains. Notably, bond yields have continued rising even during periods of market stress, raising questions about their effectiveness as portfolio diversifiers. Still, Li believes equities can continue to outperform rising yields as long as cash flow growth keeps pace. She favours high-quality, short-duration bonds, arguing that in an inflationary environment marked by supply chain constraints, longer-duration bonds will likely require higher yields to remain attractive.

Liquidity Risks and IPOs

2026 is set to see three major IPOs SpaceX, OpenAI, and Anthropic reflecting strong investor confidence but also posing a risk to market liquidity. SpaceX is expected to go public first, in June, followed by OpenAI and Anthropic later in the year.

Li estimates the combined liquidity drain from these listings at around $200 billion, particularly as corporates that previously borrowed conservatively begin taking on more debt further tightening liquidity. She noted that this dynamic could weigh on markets in the short term.

Macro Is Micro

One of BlackRock’s key themes for 2026 is “Macro is Micro.” As Li put it, AI spending has become “so big that it has turned micro into macro” meaning company-level AI expenditure now shapes the global macro outlook, a reversal from the past when macro trends were driven primarily by monetary and fiscal policy.

Li’s outlook highlights both opportunity and risk: AI-driven enthusiasm and strong corporate margins continue to fuel equity gains across developed and emerging markets, but rising interest rates, liquidity pressures, and geopolitical tensions remain significant headwinds.