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.
The SpaceX IPO Is the Biggest in a Decade. These 2 Stocks Will Benefit.
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.
