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AI · IPO · SpaceX · Tech Stocks
SpaceX's initial public offering on June 12 saw shares surge 20% to close at $160.95, establishing the Elon Musk-led space and AI company with a $2.11 trillion market capitalization and marking the largest IPO in history, raising $75 billion.
The IPO, which opened at $150, 11% above its $135 IPO price, never fell below $149.3 on its debut day, reaching a high of $176.5. Susannah Streeter, chief investment strategist at Wealth Club, noted the IPO was four times oversubscribed, driving investors to the secondary market.
SpaceX's $2.11 trillion valuation positions it as the world's seventh most valuable company, between Taiwan Semiconductor and Broadcom. The company projects a $28.5 trillion total addressable market, with AI accounting for $26.5 trillion, primarily from enterprise applications.
Stephen Dover, chief market strategist at Franklin Templeton, states this success paves the way for other mega-cap tech IPOs like OpenAI and Anthropic, which will reprice growth equities broadly and create competition for capital. Dan Ives, head of global technology research at Wedbush Securities, views the positive debut as a good sign for future AI-focused IPOs, driving further investment into the AI revolution.
Investors should note SpaceX's high valuation at 109 times sales and its nearly $5 billion loss last year, contrasting with Nvidia's 20 times sales.
