Nvidia (NASDAQ: NVDA) stock could emerge as the biggest winner from the historic SpaceX (NASDAQ: SPCX) IPO, according to a new analysis from Lynx Equity.
In a note published on June 16, the firm argued that investors seeking exposure to the long-term benefits of SpaceX’s growth may be better off owning NVDA stock instead of SPCX shares.
The view comes after SpaceX completed the largest initial public offering in history, raising approximately $75 billion at $135 per share. The stock opened at $150 and closed its first trading session near $161, lifting the company’s valuation above $2 trillion.
Despite the attention surrounding SpaceX’s market debut, Lynx Equity believes the most significant financial impact could be felt across the semiconductor sector, particularly by Nvidia.
According to the analyst, the IPO improves the outlook for xAI and Terafab, two initiatives expected to drive substantial spending on artificial intelligence infrastructure and semiconductor manufacturing.
The firm noted that SpaceX’s valuation is increasingly tied to xAI, Elon Musk’s artificial intelligence business, which continues to expand its computing capacity through large-scale deployments of NVIDIA GPUs.
Increased spending on AI
With fresh capital and greater financial flexibility following the IPO, SpaceX and xAI are expected to accelerate spending on AI training and inference infrastructure, supporting additional demand for NVIDIA’s AI accelerators.
Lynx Equity said NVIDIA offers a more attractive risk-reward profile than SpaceX because its business fundamentals are more tangible and directly linked to AI-driven revenue growth.
The analyst maintained a $250 price target on NVDA shares, citing continued growth in AI infrastructure spending and semiconductor capital investment.
A key driver of the bullish outlook is xAI’s growing demand for computing power. The company already operates the Colossus supercomputer, powered by hundreds of thousands of Nvidia GPUs, while continued AI expansion is expected to drive further hardware demand.
The report also pointed to multi-year GPU rental agreements with major cloud providers and NVIDIA’s upcoming Vera and Rubin platforms as catalysts for additional AI infrastructure spending.
At the same time, Lynx Equity said increased investment from SpaceX, xAI, and Terafab could also support the broader semiconductor industry.
The firm highlighted Lam Research, Applied Materials, ASML, and KLA, along with Micron, SanDisk, Seagate, and Western Digital, as potential beneficiaries. Google could also benefit from its GPU rental agreements with xAI.
