SpaceX targets $1.77 trillion valuation and $75 billion in IPO funding, but Morningstar values the company at only $780 billion.

SpaceX is approaching an IPO and positioning itself as an AI, satellite, and rocket stock. The company estimates its total addressable market at $28.5 trillion, with $26.5 trillion in the AI opportunity alone—consisting of $2.4 trillion in AI infrastructure, $760 billion in consumer subscriptions, $600 billion in digital advertising, and $22.7 trillion in enterprise applications.

SpaceX is targeting a valuation of $1.77 trillion and aims to raise as much as $75 billion in fresh capital. However, Morningstar analysts conclude the entire company may be worth only $780 billion—less than half the company's ideal valuation target—citing skepticism over Grok (SpaceX's primary AI chatbot product) as a leading AI lab.

Morningstar recommends waiting to buy SpaceX stock after an expected price correction rather than purchasing at the IPO, stating that long-term investors will have opportunities with 'a greater margin of safety' after the initial offering.