Elon Musk Whether You Like Him Or Not Is A 'Generational Founder' And SpaceX Is A 'Core Tech Holding' Long Term, Says Gene Munster
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Gene Munster, managing partner and co-founder of Deepwater Asset Management, said investors watching SpaceX's expected market debut should focus less on its $1.77 trillion valuation and more on the $75 billion primary stock sale that could shape early trading. Munster Says Float Matters More Than Valuation In a post on X on Wednesday, Munster said the size of the primary raise is the more important figure in assessing how SpaceX may trade in the month after its initial public offering. The offering could rise to about $86 billion if underwriters exercise overallotment options. Don't Miss: Munster said the structure would leave a limited float, or the number of shares available for public trading. He argued that tight supply, combined with intense demand, could fuel an immediate IPO "pop." When discussing how @SpaceX will trade in the month after its IPO, the $1.77T valuation is less important.The bigger number is the $75B primary raise (potentially $86B with overallotment), which should fuel an IPO pop given the very limited float.Longer term, there should be… https://t.co/n1ujSL3S3k— Gene Munster (@munster_gene) June 3, 2026 "When discussing how @SpaceX will trade in the month after its IPO, the $1.77T valuation is less important," Munster wrote. Long-Term Bulls See Core Tech Holding Munster said longer-term investors should view SpaceX as a "core tech holding," saying there "should be little debate" about owning the stock. He described Elon Musk as a "generational founder" and said SpaceX stands apart in sovereign AI infrastructure. Trending: Avoid the #1 Investing Mistake: How Your ‘Safe' Holdings Could Be Costing You Big Time Munster has earlier argued that SpaceX is building the world's first "sovereign AI" platform by controlling hardware, software and distribution. He has cited Grok AI, proprietary chip manufacturing, Starlink and reusable rockets as pieces of a closed-loop system that traditional tech rivals cannot easily match. He has previously called SpaceX "one to own for the next decade" and said there is a greater than 50% chance of a future AI-focused merger involving SpaceX, xAI or Tesla Inc.. SpaceX Listing Could Reset IPO Market SpaceX has set its IPO price at $135 a share as it nears a historic public listing. The offering would rank as the largest IPO on record if completed as planned, surpassing Saudi Aramco's 2019 listing. See Also: Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier. Wedbush analyst Dan Ives called the listing a "watershed moment," saying it would be the first major test for public markets after years of muted IPO activity. He said SpaceX could pave the way for AI companies such as Anthropic and OpenAI to follow. Prediction market traders on Polymarket were also bullish Thursday, assigning a 75% chance that SpaceX's market value would top $2 trillion after the IPO and a 90% chance it would exceed $1.8 trillion. Still, the valuation has critics. According to a Reuters report on Tuesday, Morningstar has argued that SpaceX may be worth far less than market expectations, citing uncertainty about future revenue from AI and space computing. Photo Courtesy: IAB Studio on Shutterstock.com Read Next: Think you're saving enough for your kids? You might be dangerously off — see why Building Wealth Across More Than Just the Market Building a resilient portfolio means thinking beyond a single asset or market trend. 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