Key Points
The SpaceX IPO is nearly upon us. And investors around the world are grappling with the company’s lofty $1.77 trillion valuation target. Critical to that valuation target is the company’s fledgling artificial intelligence division. SpaceX estimates that its AI division alone is chasing a total addressable market of $26.5 trillion. If true, that would potentially more than justify a $1.77 trillion market cap.
Still, there are many unknowns. No one can say for sure whether SpaceX’s AI bets will pay off. The capital costs will be truly enormous. Evercore ISI — an advisory investment bank — predicts SpaceX’s capital expenditures will reach $360 billion by 2030, nearly doubling in value to $732 billion by 2031. The vast majority of that spending will be dedicated exclusively to AI investments. To put that into perspective, SpaceX’s total capital spending last year was just $20 billion — a figure that includes spending across all of its business segments.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
While SpaceX’s future may still be uncertain, there’s one thing we know nearly for certain: The company will go on a massive spending spree following its IPO. And there are two stocks in particular poised to benefit.
1. Elon Musk loves feeding his other start-ups
SpaceX CEO Elon Musk has a long history of using his start-ups to enrich each other. Tesla (NASDAQ: TSLA), for example, took a $2 billion stake in xAI –Musk’s AI start-up — earlier this year. Then, SpaceX merged with xAI completely. So already, Tesla, xAI, and SpaceX have shared financial incentives.
Take a look at SpaceX’s IPO prospectus and you’ll notice how closely intertwined Musk’s businesses have become. xAI, of course, is mentioned 400 times in the 370 page document. That’s expected considering SpaceX now owns the AI business outright, and expects to spend tens, if not hundreds of billions of dollars in the coming years scaling its related infrastructure.
Tesla, however — a Musk company that SpaceX doesn’t own a direct stake in — is mentioned 87 times in the IPO prospectus. SpaceX, of course, has a long history of promoting Tesla products. In 2018, its Falcon Heavy rocket launched a Tesla Roadster into space, an event that was live streamed around the world. But the company also has a long history of purchasing Tesla products outright, including Tesla Cybertrucks and its Megapack energy-storage batteries.
With a bunch of new IPO cash and a history of sharing the wealth, expect Musk to direct a portion of its newfound capital to Tesla’s coffers.
Image source: Getty Images.
2. This AI behemoth will continue to dominate
One stock that is easy to foresee as a benefactor of SpaceX’s upcoming IPO is Nvidia (NASDAQ: NVDA). Jensen Huang, Nvidia’s CEO, once bragged that its AI chips are “so good that even when the competitor’s chips are free, it’s not cheap enough.” The data proves this largely to be true. While competition is growing, the company maintains an 85% market share globally for AI GPUs.
Long term, SpaceX plans to produce its own chips, directly reducing its reliance on Nvidia’s chips. But fully scaling that production infrastructure could take years. In the meantime, expect SpaceX to maintain its heavy reliance on Nvidia. Musk has already revealed that both Tesla and SpaceX will continue ordering Nvidia chips at scale, potentially for years to come.
SpaceX’s recent partnership with Anthropic highlights how necessary Nvidia’s chips still are to the company’s success. In May, SpaceX’s xAI division signed a major agreement with Anthropic that provides it access to Colossus 1, its mega data center. At the heart of this data center sits 220,000 Nvidia GPUs, including its H100 and H200 chips, plus next-generation GB200 accelerators.
The economics of SpaceX’s AI ambitions remain in question. Top-line growth should be very impressive. But a massive amount of capital will be needed. Real-world constraints surrounding land use, permitting, and energy supply could put a cap on the pace of this expansion. One thing, however, is nearly certain: SpaceX will use a huge portion of its IPO proceeds to buy Nvidia chips.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $520,468!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $55,573!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $442,220!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of June 11, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
