SpaceX Sets IPO Date, Pivots to AI and Chip Manufacturing
SpaceX will go public on June 12 under the ticker SPCX, with shares priced at $135 and a valuation of roughly $1.77 trillion.
While the company is best known for its rockets and Starlink satellite internet, its recent S-1 filing reveals a major strategic pivot toward artificial intelligence and chip manufacturing.
Key Details
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Colossus 1 Supercomputer: Currently operational, this system is built with 220,000 Nvidia GPUs (H100, H200, GB200) and boasts over 300 megawatts of computing capacity.
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Major AI Partnership: Anthropic has signed a deal to run its Claude AI models on the Colossus 1 supercomputer.
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Terafab Initiative: SpaceX has outlined plans for "Terafab," a chip manufacturing initiative aiming to produce one terawatt of compute hardware annually—potentially for AI data centers located in space.
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Hardware Strategy: SpaceX CFO Bret Johnson confirmed the company's AI data centers would use Nvidia GPUs. During a recent earnings call, Elon Musk also mentioned plans to use Intel's 14A process for the Terafab initiative.
Supply Chain Beneficiaries
The article spotlights three publicly traded companies tied to SpaceX's AI buildout:
- Nvidia (NVDA): Provides GPUs for Colossus 1. Analyst price target: $288 (38% upside).
- Taiwan Semiconductor Manufacturing (TSM): Manufactures Nvidia's advanced chips and dominates the foundry market with a 73% share. Analyst price target: $490 (15% upside).
- Intel (INTC): Involved in Terafab via the 14A process. Analyst price target: $130 (20% upside).
Market Context
The article notes that U.S. tech stocks now account for over 39% of the S&P 500's market cap—a figure higher than during the dot-com bubble. The Shiller CAPE ratio is also above 40.
In light of these valuations, the article suggests gold as a diversifier, citing Ray Dalio and promoting Goldco for gold IRAs.