How To Play the SpaceX IPO
Contributed Opinion

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SpaceX has submitted the documents to go public.

Elon Musk's space transportation firm might hit the stock market as soon as mid-year. It'll be the most colossal IPO ever. Projections peg SpaceX's worth at an astounding $1.75 trillion.

That would instantaneously place it in the top 10 biggest corporations globally. SpaceX would surpass the value of Meta Platforms Inc. (META:NASDAQ) and Tesla Inc. (TSLA:NASDAQ).

At first glance, SpaceX's price tag verges on lunacy.

Last year, Tesla pulled in nearly $100 billion in revenue. Meta amassed $200 billion. Alphabet Inc. Class A (GOOGL:NASDAQ) hauled in $400 billion.

SpaceX generated a mere $16 billion.

However, markets don't value enterprises based on their current state. Markets price based on future prospects. And SpaceX's ceiling is stratospheric because it intends to construct...

Data centers in the cosmos.

I realize it seems outlandish.

But once you examine what's unfolding with artificial intelligence (AI) foundations here on our planet, it's logical. Facilities fueling cutting-edge AI rank among the most resource-intensive structures around.

Meta is erecting a complex spanning over 4 million square feet—approximately the dimensions of a sprawling airport concourse.

Inside, these buildings are jammed with innumerable server stacks... countless AI processors... and sufficient networking equipment and wiring to match a modest industrial metropolis.

They devour immense quantities of power. ChatGPT guzzles enough energy to electrify 4.4 million American households daily.

And that's only a single system!

Server farms also emanate tremendous heat. A lone data center can readily drain a billion gallons of H2O annually solely for chilling, adequate to empty the whole Central Park Reservoir.

Operating server farms necessitates perpetual enhancements to adjacent infrastructure. Additional territory. Authorizations. Power lines. Generating stations. And water that may already be scarce.

And that's prior to encountering dreaded NIMBYs: the "not in my back yard" crowd. Folks might adore harnessing AI tools, but their sentiments diverge when a hulking data center sprouts beside them.

Space resolves all these issues.

An orbital server farm can harness the vastest energy source accessible: our sun.

It functions nonstop, year-round. No acreage needed. No NIMBYs. No vying with residences or plants for electricity. Space is also a frigid -455°F. This mitigates one of the heftiest data center expenses: cooling.

Add it all up, and you should regard the concept of cosmic data centers earnestly.

In 2025, SpaceX established a fresh yearly benchmark, exceeding 170 launches. It hoisted over 2,600 tons of freight into the firmament. Elon is essentially helming an orbital "FedEx."

Every tech titan yearning to dispatch server farms spaceward must compensate SpaceX.

We'll observe how the IPO unfolds... I'm unsure if I'd acquire SpaceX immediately.

But copious smaller, below-the-radar disruptors will profit just as handsomely.

Once you begin pondering all the elements an orbital server farm would require, you grasp that an entire support economy must arise around it.

You're not merely flinging servers into the heavens and activating a switch. The equipment must withstand takeoff and then autonomously assemble in orbit.

Then comes upkeep. On Earth, if a server malfunctions, a specialist strolls over and replaces the component. In space, each repair morphs into a mission.

And gear never endures forever. Components fail. Setups age. Innovation progresses. Some apparatus will demand upgrades or safe return to Earth.

That spawns demand for a novel breed of space enterprises.

Envision firms that fabricate robotic appendages and docking mechanisms to link modules in orbit... and outfits that furnish repair services, logistics depots, and berthing gear.

These companies already exist. I've convened with some of them.

The finest ones are poised to witness the sort of spectacular "0 to 1" expansion that only an entirely new sector can deliver.

This is how nascent industries begin...

First, a groundbreaking development enables something novel. Then the foundation gets erected around it, and a whole fresh ecosystem of enterprises materializes to bolster it.

That's precisely what's transpiring here.

SpaceX is enabling the eventual relocation of server farms off our planet with its swift launch cadence... and we could soon behold a new class of businesses emerging to construct, sustain, and run that infrastructure in orbit.

As the IPO draws nearer, I anticipate heightened attention—and investor capital—will inundate budding space stocks. It's one of the pivotal domains I'm concentrating my focus on presently.