The SpaceX IPO Is the Biggest in a Decade. These 2 Stocks Will Benefit.
SpaceX will soon have tens of billions of dollars to deploy for growth.
Overview
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.
Details
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.
Source
Originally published at www.fool.com.