Elon Musk’s SpaceX has communicated to underwriters that it will maintain its US$135 IPO price, valuing the firm at approximately US$1.7 trillion. As the company prepares for an expected June launch, the offering faces intense scrutiny from analysts and market participants concerned about potential overvaluation and the broader impact on global tech investment.
SpaceX Valuation and the US$135 IPO Target
Despite market volatility and cooling sentiment toward high-flying technology names, SpaceX remains committed to its US$135 per share valuation, according to reporting from Moomoo. This pricing strategy places the aerospace giant’s total valuation at roughly US$1.7 trillion, positioning it to become a significant anchor in the U.S. equity market. The company aims to raise US$75 billion in proceeds, a figure that would secure its place as the largest initial public offering in U.S. stock market history.
However, the ambitious valuation has met with skepticism. Morningstar analysts, as noted by The Straits Times, have publicly questioned the pricing, stating, “We think the company has been significantly overvalued, and investors will have opportunities to buy the stock at more attractive levels after the IPO.”
Anthropic and OpenAI: The Competitive AI Landscape
Photo: The Straits Times
SpaceX is not the only high-stakes player currently reshaping investor portfolios. Anthropic, the developer behind the Claude chatbot, confirmed on June 2 that it has filed confidential paperwork with the US Securities and Exchange Commission to move forward with its own public offering. This move effectively beats rival OpenAI to the public markets, though OpenAI has signaled it is in no rush to follow suit.
The race between these AI entities is intense. Anthropic’s filing follows a recent funding round that raised US$65 billion, bringing its valuation to US$965 billion. This places Anthropic ahead of OpenAI’s US$852 billion valuation recorded in March. In response to the news, OpenAI chief executive officer Sam Altman stated that his company would launch its IPO only when “it makes sense.”
Market Tremors and the Semiconductor Rotation
SpaceX Sets IPO Price at $135, Targeting $1.75 Trillion Valuation – DTH
The anticipation surrounding these listings is occurring against a backdrop of shifting investor priorities. Tech-heavy indices are feeling the pressure as capital rotates out of established semiconductor names. Moomoo reports that the SOX index recently fell 2% amid a broader pullback, exacerbated by a 13% plunge in Broadcom shares.
This cooling sentiment has reached as far as Singapore. Tech stocks listed on the Singapore Exchange, including AEM Holdings, Frencken Group, and UMS Integration, have seen share prices retreat after a period of strong performance. Data from the Singapore Exchange indicates that net institutional flows across 49 technology stocks totaled $582.5 million as of June 3, with investments heavily concentrated in 12 companies within the semiconductor production and testing chain.
Global Economic Headwinds and Trade Policy
Photo: Moomoo
Beyond the tech sector, the broader market is contending with geopolitical uncertainty and potential trade friction. The U.S. Trade Representative has proposed new tariffs of 10% or more on a wide range of trading partners, including Canada, Mexico, and the United Kingdom, following an investigation into forced labor imports, according to TheStreet Pro. China, Japan, India, and Brazil face even steeper proposed tariffs of 12.5%.
These policy shifts coincide with broader market exhaustion. After a nine-day winning streak for the S&P 500—a run that historically rivals the record-setting performance of 1995—investors are showing signs of caution. With Treasury Secretary Scott Bessent scheduled to testify before the Senate Finance Committee, markets are bracing for further clarity on fiscal policy and the ongoing diplomatic deadlock between Washington and Tehran.
What to Expect in the Coming Month
As the market moves toward late June, the primary focus remains on the execution of the SpaceX IPO. The company has clarified its position regarding the timeline, stating, “This gives us the option to go public after the SEC completes its review. The proposed IPO will depend on market conditions and other factors,” as reported by The Straits Times.
Investors should anticipate continued volatility as the market balances the excitement of blockbuster AI and aerospace listings against the reality of potential inflation tailwinds from new tariffs. Whether the current valuation of SpaceX holds up under the scrutiny of public trading remains the primary question for the remainder of the quarter.
