Gene Munster, managing partner and co-founder of Deepwater Asset Management, believes SpaceX‘s upcoming public debut on June 12 is more than just another high-profile IPO.
In a post on X Tuesday, Munster described the IPO as “arguably the most exciting event in tech history,” arguing that SpaceX‘s combination of launch infrastructure, satellite connectivity, and artificial intelligence ambitions sets it apart from traditional technology companies.
Why Munster Thinks SpaceX Is Different
“While everything the company has built rests on decades of tech progress, which I don't want to diminish, its unique assets and sovereign AI mission position it to become one of the fastest-growing and most defensible companies of the next decade,” Munster added.
While he described Alphabet Inc.’s Google (NASDAQ:GOOG) (NASDAQ:GOOGL) as SpaceX’s closest competitor, Munster argued the technology giant still lacks several pieces needed to build a fully integrated AI platform.
“Google is the closest competitor, and Google is formidable. But Google doesn’t make rockets. Google doesn’t run an ISP. Google can’t put a data center in orbit,” Munster said.
The IPO Is About More Than Rockets
“Investors looking at the SpaceX IPO are focused on the launch business and Starlink subscribers. They’re missing the real story,” Munster added.
He said that investors evaluating SpaceX primarily through the lens of its launch business may be overlooking the company’s broader ambitions in AI and digital infrastructure.
Earlier this month, Munster downplayed concerns around SpaceX’s expected $1.77 trillion valuation, arguing that the IPO’s massive size and limited float would be more important drivers of early trading performance.
Investors Remain Divided On Valuation
The strong interest appears to support Munster’s view that investor enthusiasm remains elevated, with Reuters reporting Tuesday that the IPO is currently oversubscribed by three-and-a-half to four times the planned offering size.
Earlier this week, investor Ron Baron said SpaceX could ultimately become the most valuable company ever created, forecasting its valuation could grow from less than $2 trillion at IPO to as much as $30 trillion over time, while venture capitalist and Palantir Technologies co-founder Joe Lonsdale told CNBC that “betting against this guy”, referring to Elon Musk, “is not very smart.”
Not everyone shares the optimism. Morningstar said Monday that its $780 billion fair value estimate remains roughly 55% below SpaceX’s reported IPO valuation despite considering several ambitious technological assumptions.
In comments made last week, famed investor Steve Eisman called SpaceX’s valuation “crazy” and said the company’s expansion into AI has made the bull case considerably more speculative.
A High-Stakes Test For Public Markets
SpaceX’s debut is expected to serve as a major test of investor appetite for a new generation of mega-IPOs, with market participants watching whether a strong performance creates momentum for anticipated listings such as Anthropic and OpenAI.
If completed as planned, the SpaceX offering would eclipse the 2019 IPO of Saudi Aramco, which has held the record for the largest public listing in history.
For Munster, the significance of SpaceX lies not in its ability to break IPO records, but in whether the company can translate its combination of launch infrastructure, connectivity and AI ambitions into one of the defining technology platforms of the next decade.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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