Cramer's Warning on SpaceX IPO Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: Fool
- IPO Valuation Concerns: Cramer highlights that SpaceX's IPO target valuation ranges from $1.75 trillion to $2 trillion, which would make it one of the most valuable companies globally; however, he worries that a small float could lead to a disconnection between stock price and fundamentals.
- Market Supply-Demand Impact: Cramer suggests that the SpaceX IPO could trigger a wave of mega-tech debuts, creating supply-demand imbalances that force investors to sell existing holdings to participate in new offerings, thereby exerting downward pressure on the broader market.
- Lock-Up Period Risks: Cramer warns investors to consider the implications of lock-up periods, which typically prevent insiders from selling shares for 90 to 180 days post-IPO; once this period ends, a significant influx of shares could hit the market, exacerbating price volatility.
- Fundamentals vs. Bubble: While SpaceX generates tangible revenue from reusable rocketry and satellite broadband, Cramer expresses skepticism about its valuation, arguing that if scarcity-driven bidding inflates its market cap, the stock could detach from its fundamentals, potentially forming a bubble.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Optimistic Future Outlook: The company anticipates Q2 FY2026 revenue of $22 billion, representing a 47% year-over-year increase, indicating that revenue growth momentum will continue amid soaring demand for AI processors.
- Market Share Advantage: With a 60% share of the ASIC market, Broadcom is well-positioned as ASIC shipments for AI servers are expected to rise by nearly 45% in 2026, further solidifying its leadership in the AI chip market.
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See More
