While the matter of profitability gives cause to question SpaceX targeting a stock price of $135 and a valuation of $1.75 trillion at the initial public offering (IPO), there are multiple factors lending credence to the notion that the equity will enjoy strong tailwinds through 2026.
As it turned out, ChatGPT’s advanced artificial intelligence (AI) also believes that said Elon Musk’s company has sufficient strength to make a 30% rally to $178 the most likely outcome of trading between the June 12 IPO and the closing bell on December 31, 2026.
Why ChatGPT estimates SpaceX stock will trade at $178 at the end of 2026
The AI started its analysis by identifying what it believes to be SpaceX’s biggest assets, explicitly naming the launch business and the associated near-monopoly position, Starlink, government contracts, Musk’s influence with retail investors, and the brand itself.
It also noted that investors are likely to view the company as more than a rocket firm, instead viewing it as embedded with the American military, serving as a communications giant, an AI infrastructure play, and as a space corporation more broadly given the Mars colony ambitions.
Still, OpenAI’s flagship platform also explained that, for all the boons and the business moat, the intended IPO valuation and share price remain extreme given the revenue and lack of profitability, indicating that ‘a lot of future success’ will be priced in from the moment the equity hits the public markets.
Therefore, ChatGPT explained that, though it sees continued explosive success across essentially every division as possible, it cannot assume a vertical rally toward $250 or above as plausible.
On the flip side, despite the concerns, the AI estimated that between the brand name and the years of anticipation for the IPO, demand among investors will almost certainly be significant, leading it to, as it added, keep returning to the range between $170 and $190 during its analysis.
Ultimately, ChatGPT settled at $178 because it assumes investors neither view the initial valuation as excessive nor too low while accounting for some volatility.
ChatGPT did not name these SpaceX IPO stock tailwinds
Elsewhere, the upcoming SpaceX IPO also benefits from certain structural changes that were left unmentioned by OpenAI’s model despite bolstering the bullish price target.
Specifically, Elon Musk agreeing to have his stake locked for a period of 366 days will serve as a show of confidence in the firm, while the fast-track inclusion into the Nasdaq-100 index will trigger substantial buying activity from various index-tracking funds unless there is an immediate and catastrophic plunge.
Additionally, the low initial float is also likely to rapidly drive SpaceX stock higher, at least through the summer and before the provisions from insiders free a significant part of their stakes for trading in the open market.
Still, purchasing the equity close to its launch remains risky, as Tesla’s (NASDAQ: TSLA) 2026 performance indicates Musk might have lost some of his appeal with retail traders while, as Jim Cramer pointed out, the company is likely to face significant competition given the likely OpenAI and Anthropic move to their own IPOs and Google (NASDAQ: GOOGL) is undertaking an equity fund raise of its own.
Featured image via Shutterstock
