The SpaceX IPO Will Create a $75 Billion Spending Spree -- These 2 AI Stocks Will Win

The upcoming SpaceX IPO should marque history. There are already ways to put successful SpaceX today. But these methods are mostly buying shares that person already been issued. The IPO, meanwhile, volition contented caller SpaceX shares, meaning that the proceeds volition spell straight to the company's slope account, minus a chunk of underwriting and different miscellaneous fees.

In total, the SpaceX IPO could nett the institution determination betwixt $50 cardinal and $75 billion. That's a immense magnitude of caller superior that the institution should enactment to enactment astir immediately. SpaceX has immense visions for the future, everything from scaling up its monolithic Starship rocket to establishing a basal connected the moon. The rocket institution could adjacent look to physique AI information centers successful space.

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Expect each of SpaceX's IPO proceeds to yet extremity up successful different companies' pockets. This spending spree, which could full up to $75 billion, should straight payment 2 AI stocks successful particular.

1. The SpaceX IPO makes Nvidia an evident victor

SpaceX is simply a immense purchaser of specialized AI chips similar GPUs. The largest GPU shaper successful the satellite close present is Nvidia (NASDAQ: NVDA). By immoderate estimates, Nvidia controls astir 85% of the marketplace for AI chips.

SpaceX is truthful reliant connected these specialized chips that it yet plans to nutrient them in-house, spending billions of dollars implicit the adjacent fewer years to standard up manufacturing infrastructure. But until that infrastructure is up and running, expect SpaceX to proceed buying Nvidia's chips. Indeed, Elon Musk precocious stressed that SpaceX volition proceed buying Nvidia's chips "at scale" for immoderate time.

What precisely does SpaceX request Nvidia's chips for? Well, astir everything. For one, SpaceX presently owns xAI, Musk's AI start-up. That part unsocial is regularly successful the marketplace for tens of billions of dollars worthy of Nvidia chips. Nvidia's chips are besides captious to SpaceX's halfway concern of launching rockets to abstraction -- a data-intensive task that AI tin assistance with dramatically.

In short, SpaceX is already a large user of Nvidia's products. With $50 cardinal to $75 cardinal successful caller capital, expect Nvidia to extremity up a immense victor post-IPO.

2. A boost for xAI is simply a boost for Tesla's self-driving aboriginal

I already covered wherefore 1 of Musk's different companies, Tesla (NASDAQ: TSLA), volition payment from the SpaceX IPO. In that article, I explained a fewer ways Tesla should win: