Buy This AI Stock to Own SpaceX Pre-IPO and Hold It Through the Robotaxi Boom
Why it matters: Alphabet's $900 million investment in SpaceX is now worth over $120 billion, a 13,400% return.
- SpaceX, known for Starship and Starlink, has filed IPO paperwork and is expected to go public this summer, with a target valuation of $1.75 trillion after merging with xAI.
- Alphabet (GOOGL +3.88%, GOOG +3.44%) holds a 7% equity stake in SpaceX, an investment that has grown from $900 million in 2015 to over $120 billion, yielding a 13,400% return.
- Alphabet is aggressively investing in AI, with Google Cloud revenue rising 48% in Q4 due to demand for Gemini models and TPUs, which are gaining market share against Nvidia GPUs, projected to reach 24% of accelerator sales by 2030.
- Waymo, Alphabet's autonomous ridesharing unit, leads the robotaxi market, providing public rides in 11 U.S. cities and testing in 20 more globally, with Morgan Stanley analysts estimating it will account for 34% of the market.
Investors seeking pre-IPO exposure to SpaceX, which recently merged with xAI and targets a $1.75 trillion IPO valuation, can gain it through Alphabet (GOOGL, GOOG) due to its substantial 7% equity stake. This stake, initially $900 million, is now valued at over $120 billion, representing a 13,400% return, while Alphabet also boasts strong AI growth in Google Cloud and its Waymo robotaxi division.
