Space Exploration Technologies Corp. saw more than $400 billion in market value disappear just days after its record IPO, prompting economist Mohamed El-Erian to highlight the dramatic split between early winners and late buyers. The company’s stock fell 16.43% on Monday to close at $154.60, extending a sharp pullback from its recent all-time high. The decline ranks as the second-largest one-day value loss for a U.S. company, reducing its market capitalization to roughly $2.04 trillion.

Mohamed El-Erian: ‘Wild’ Difference Between Winners And Losers

Elon Musk’s company priced its IPO at $135 per share on June 12, opened at $150 and ended its first trading day at $160.95. Shares surged to a record high of $225.64 following the announcement of a $60 billion stock transaction to acquire Anysphere, the maker of AI coding tool Cursor. Since then, the stock has retreated sharply. Commenting on the volatility, El-Erian noted that investors who bought at the IPO are up 23%, while those who bought at the high are down almost 25%.

Market Context and Other Movers

The broader market finished mixed, with the Dow Jones Industrial Average gaining 0.29% to close at 51,712.71. The S&P 500 slipped 0.37% to 7,472.79, while the Nasdaq fell 1.3% to end the session at 26,166.60. Micron Technology rose 6.82% to close at $1,211.38, hitting a 52-week high of $1,213.56 ahead of its earnings report. Super Micro Computer increased 15.66% to $35.46 following a product launch and upgrade. Conversely, Netflix fell 5.82% to $72.88, and Palantir Technologies dropped 6.98% to $119.50, both hitting 52-week lows.

Space Exploration Technologies Corp. raised $85 billion in its initial public offering earlier this month, creating a significant capital pool likely to flow through a sprawling ecosystem of suppliers. As the company expands its launch business, scales Starlink's satellite network, and builds artificial intelligence infrastructure through sister company xAI, the IPO proceeds are expected to benefit a wide range of sectors including semiconductors, networking equipment, aerospace materials, power systems, and data center infrastructure. While Nvidia Corp. is often cited as a primary beneficiary, numerous other companies are positioned to gain from the next phase of spending.

The xAI Buildout Could Boost AI Infrastructure Suppliers

The largest spending commitments may ultimately come from xAI and its rapidly growing AI infrastructure footprint. Training advanced AI models requires massive amounts of computing power, networking equipment, cooling systems, and electricity. This demand could benefit companies such as Dell Technologies Inc., Super Micro Computer Inc., and Arista Networks Inc., all of which play key roles in building AI clusters.

AI infrastructure extends well beyond servers. As data centers become larger and more power-intensive, companies focused on energy and cooling systems could also see gains. Vertiv Holdings Co. and GE Vernova Inc. have emerged as critical suppliers to the AI boom, while Caterpillar Inc. provides backup power solutions frequently used in large-scale data center deployments. Tesla Inc. and Bloom Energy Corp. could also find themselves linked to the expansion through energy storage, distributed power systems, and electricity infrastructure.

Starlink Expansion Could Create Another Set Of Winners

While AI attracts most of the headlines, Starlink remains one of SpaceX's most capital-intensive growth engines. The satellite internet business requires a steady supply of electronic components, communications equipment, and advanced manufacturing inputs. Companies such as STMicroelectronics N.V., Flex Ltd., TE Connectivity Plc, Amphenol Corp., and Texas Instruments Inc. operate in areas that support aerospace electronics and communications systems. As SpaceX continues launching satellites and expanding Starlink's global footprint, demand for components throughout the supply chain could rise alongside it.

Rocket Manufacturing Has Its Own Supply Chain

Building rockets requires far more than chips and servers. Aerospace materials suppliers including Hexcel Corp., ATI Inc., Constellium SE, and CPS Technologies Corp. provide advanced materials used in demanding aerospace applications. These companies typically receive far less investor attention than software or semiconductor names, but they occupy critical positions within the aerospace manufacturing ecosystem. Engineering and design firms may also see increased activity as SpaceX continues expanding launch facilities, manufacturing capacity, and infrastructure projects. AECOM, for example, operates in areas that could benefit from large-scale construction and engineering spending.

The Bigger Story

For years, investors have treated SpaceX primarily as a standalone company. The IPO changes that dynamic. Just as Nvidia's rise created opportunities across the broader AI supply chain, SpaceX's public-market debut could shine a spotlight on a much larger ecosystem of companies helping build rockets, satellites, AI clusters, and energy infrastructure. The company's $85 billion raise is now one of the largest pools of growth capital in the market. While Nvidia may capture much of the attention, investors looking for second-order beneficiaries may find opportunities throughout the SpaceX and xAI supply chains.