The reported IPO valuation for SpaceX is roughly $1.75 trillion. That’s a number so large it’s almost impossible to comprehend.

To put it in perspective, with $1 trillion, Elon Musk could buy every NFL, NBA, MLB, NHL, and MLS franchise in North America – and still have more than $400 billion left over.

The interesting part for investors isn’t necessarily SpaceX itself...

We’ve seen this movie before. When the AI boom took off, the headlines focused on the technology companies. But many of the biggest winners were the businesses supplying the infrastructure: chips, data centers, power, cooling, and networking equipment.

SpaceX could create a similar effect. If space exploration, satellite networks, and robots continue to scale, an entire ecosystem of suppliers will be needed to support that growth. Components, manufacturing equipment, automation systems, materials, sensors, and software all stand to benefit.

The biggest opportunities are often found one step away from the headline. Sometimes the best investment isn’t the rocket, it’s the companies supplying the fuel, engines, and tools that make the launch possible.

I have also included a piece from our CIBC Economics team entitled “The consecutive question”.

As always, if you have any questions, please feel free to give us a call at any time.

Have a great weekend.

Milan