Why Sandisk Stock Popped After the SpaceX IPO
Key Points
SpaceX just raised $75 billion in cash.
One private equity firm expects SpaceX to spend a lot of that cash at Nvidia and Sandisk.
- These 10 stocks could mint the next wave of millionaires ›
Sandisk (NASDAQ: SNDK) stock surged 6.6% through 12:05 p.m. Monday -- and for a reason that may surprise you.
In a note out this morning, Canadian private equity shop Lynx Equity told investors that even though the SpaceX IPO is over, and even after the space company's shares are up 31%, there's still a way for investors to make money on the SpaceX IPO:
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
By buying Sandisk (NASDAQ: SNDK) stock.
Image source: Getty Images.
SpaceX is flush with cash now
SpaceX made history last week, both scoring a gigantic valuation (currently $2.3 trillion -- quite a lot for a space stock with no profits) and raising $75 billion in cash.
Now SpaceX will have to figure out how to deploy all this cash to keep its growth rate going. And here's the thing: Lynx thinks SpaceX will spend quite a lot of this cash on semiconductors.
While still thought of by most investors as a space company, you see, the gigantic tech company that IPO'ed last week is really much more of an AI stock. Indeed, while the entire space launch market is currently valued at single-digit billions per year, at least some investors believe that SpaceX's AI business could eventually be worth $30 trillion annually.
What this means for Sandisk
For SpaceX to come anywhere near fulfilling this dream, however, it's going to need to build a huge AI business -- and spend heavily on AI chips and the memory chips that support AI inference work by those chips.
This means more money flowing to Nvidia (NASDAQ: NVDA), for example (which is in fact Lynx's favorite play on SpaceX), and also more money flowing to Sandisk (NASDAQ: SNDK) as well.
The best news of all? Even valued at 23x sales, Sandisk stock is still 5x cheaper than SpaceX!
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 935%* — a market-crushing outperformance compared to 207% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of June 15, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
