Semiconductor stocks have been taking a beating, and Fundstrat’s Tom Lee thinks he knows why. It’s not a fundamental collapse in chip demand or some sudden AI disillusionment. It’s SpaceX.
Lee’s thesis is straightforward: institutional investors are liquidating their winning positions in chip and tech stocks to raise capital for SpaceX’s IPO, which is priced at $135 per share and targeting a raise of $75 billion.
The largest IPO in history creates a gravitational pull
SpaceX’s offering is being described as the largest IPO in history, and it’s reportedly multiple times oversubscribed. The anticipated post-IPO valuation sits somewhere between $1.77 trillion and $1.8 trillion.
Lee characterizes the current sell-off as “jitters” and frames it as a healthy consolidation rather than the beginning of something uglier. In his view, the rotation out of previous market winners into SpaceX is temporary, and the excitement generated by a successful IPO could actually reinvigorate the broader tech sector once the dust settles.
