2 Stocks Set to Soar with SpaceX IPO Launch
SpaceX is gearing up for a significant initial public offering (IPO) that could redefine market expectations. Elon Musk’s aerospace venture, which recently merged with xAI, has confidentially filed to go public. The company is aiming for a staggering valuation of $2 trillion, a substantial increase from the $1.25 trillion figure established during their recent merger. In contrast, the last public share valuation in late 2025 pegged SpaceX at $800 billion.
The IPO could potentially raise up to $75 billion, setting a new record in IPO history. This substantial funding will enhance SpaceX’s status among the world’s most valuable companies. Along with Musk’s increasing wealth, estimated to surpass $1 trillion post-IPO, attention is drawn to two specific stocks expected to benefit significantly from this event.
Two Stocks Set to Soar with SpaceX IPO Launch
1. Alphabet Inc.
- Investment Background: Alphabet, the parent company of Google, invested $900 million in SpaceX back in 2015, acquiring a 7% stake.
- Current Valuation Impact: Should SpaceX reach its targeted valuation of $2 trillion, Alphabet’s stake could be worth around $140 billion.
- Recent Financial Highlights: In Q1 2025, Alphabet reported an $8 billion unrealized gain linked to SpaceX.
If Alphabet still holds its 7% stake, this windfall would greatly assist the company, especially with $175 billion earmarked for AI infrastructure this year.
2. Nvidia Corporation
- Customer Relationship: While Nvidia is not a direct investor in SpaceX, it is a crucial supplier, providing advanced chips essential for SpaceX’s operations.
- Market Leadership: Nvidia has emerged as a leader in the AI GPU market, positioning itself as one of the world’s most valuable companies.
- Future Plans: Elon Musk’s ongoing projects with xAI may lead to increased chip purchases to support their AI initiatives.
Musk has expressed admiration for Nvidia and envisions expansive data center projects. His plans include launching data center satellites, which could significantly boost demand for Nvidia chips if executed successfully.
In conclusion, both Alphabet and Nvidia are positioned to gain from SpaceX’s IPO, showcasing the ripple effect of major offerings in the technology and aerospace sectors. Investors should keep a close watch on these stocks as the IPO approaches.
