{"id":749104,"date":"2026-06-20T15:54:10","date_gmt":"2026-06-20T15:54:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/749104\/"},"modified":"2026-06-20T15:54:10","modified_gmt":"2026-06-20T15:54:10","slug":"spacex-stock-joins-ai-bond-frenzy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/749104\/","title":{"rendered":"SpaceX stock joins AI bond frenzy"},"content":{"rendered":"\n

Wall Street<\/a> has a new favorite trade: lending money to artificial intelligence.<\/p>\n

NVIDIA, Alphabet, Amazon, and Oracle have all rushed into debt markets to raise hundreds of billions of dollars to fund data centers, chips, and AI<\/a> infrastructure.<\/p>\n

Investors have been lining up to buy, and the demand has been massive.<\/p>\n

Now Elon Musk<\/a>‘s SpaceX<\/a> wants in on the action. But the company’s pitch comes with some serious questions that set it apart from the tech giants already in this trade.<\/p>\n

Why big tech has flooded the bond market <\/p>\n

To understand why SpaceX’s (SPCX) planned bond deal matters, and why it’s complicated, it helps to know what’s been driving this AI borrowing boom.<\/p>\n

NVIDIA kicked things off in a big way. The chipmaker sold $25 billion worth of investment-grade bonds in mid-June, according to Bloomberg<\/a>, drawing more than $85 billion in orders.<\/p>\n

That’s more than three times the size of the deal. Nvidia<\/a> had originally planned to raise about $20 billion, but strong demand pushed it higher.<\/p>\n

Alphabet wasn’t far behind. According to a company statement, the Google parent raised<\/a> $84.75 billion through a combination of stock and preferred shares, with plans to use the money to expand AI infrastructure and computing capacity.<\/p>\n

Related: Berkshire doubles down on Alphabet under Greg Abel<\/a><\/p>\n

Notably, Berkshire Hathaway<\/a> agreed to invest $10 billion.<\/p>\n

Amazon has been borrowing in currencies from Canadian dollars to euros. In early June, the company raised the equivalent of $10 billion in Canadian dollar bonds, the largest corporate deal ever in that currency, Bloomberg<\/a> reported.<\/p>\n

Amazon has now borrowed more than $82 billion since the start of 2025.<\/p>\n

Oracle shared<\/a> earlier this year that it planned to raise between $45 billion and $50 billion in 2026 through a mix of debt and equity, according to a company statement, to meet demand from customers including OpenAI, Meta, and Nvidia’s xAI.<\/p>\n

These companies can do this easily because they’re all highly profitable. Nvidia<\/a> alone is expected to generate more than $200 billion in free cash flow<\/a> in its current fiscal year, according to Wall Street estimates.<\/p>\n

These companies can service their debt with the cash their businesses throw off. Investors know that, which is why orders have been coming in multiples of the deal sizes.<\/p>\n

SpaceX is a different story, and bond investors should know it <\/p>\n

SpaceX made history with its initial public offering as a record-setting listing that turned Musk into the world’s first trillionaire<\/a>.<\/p>\n

After the IPO<\/a>, SpaceX has been working to get investment-grade bond ratings, which it secured in June from all three major ratings agencies.<\/p>\n

According to a Bloomberg<\/a> report:<\/p>\n

Moody’s rated the debt Baa1, Fitch assigned BBB+, and S&P assigned BBB.<\/p>\n

Now, bankers are preparing to hold investor calls as soon as the week of June 23 to discuss a potential bond offering of at least $20 billion.<\/p>\n

The proceeds would refinance a $20 billion bridge loan that matures in September 2027.<\/p>\n

That loan makes up the bulk of the company’s $29.1 billion in long-term debt as of March 31.<\/p>\n

But unlike Nvidia, Alphabet, or Amazon, SpaceX is not profitable.<\/p>\n

The company lost<\/a> nearly $5 billion in 2025. In the first quarter of 2026 alone, SpaceX posted a net loss of $4.28 billion on revenue of $4.69 billion.<\/p>\n

More SpaceX: <\/p>\n

The losses more than quadrupled compared to the same period a year earlier. Much of the bleeding traces back to its artificial intelligence division, which lost $6.4 billion in 2025 while generating just $3.2 billion in revenue, according to the company’s S-1 filing with the SEC<\/a>.<\/p>\n

Strip out the rockets and Starlink satellite business, and the AI unit is a significant financial drag. That’s the business SpaceX paid dearly for when it absorbed Musk’s xAI earlier this year.<\/p>\n

To be fair, SpaceX does have some large contracts lined up.<\/p>\n

Alphabet’s Google has committed to paying the company roughly $30 billion for computing power through mid-2029, per Bloomberg<\/a>.<\/p>\n

And SpaceX<\/a> holds an approximately $45 billion deal with Anthropic over a similar time frame.<\/p>\n

However, days before the IPO roadshow, Musk posted<\/a> on X that the Anthropic deal was actually a short-term arrangement that either side could cancel with 90 days’ notice, a detail not clearly spelled out in the company’s 300-plus-page prospectus.<\/p>\n

“The company will likely want to establish a track record in debt markets soon,” CreditSight analyst Matt Woodruff told Bloomberg<\/a>. “They will need money down the road for capital expenditure, so from that perspective, the sooner the better.”<\/p>\n

\"Elon Elon Musk is raising debt capital to fuel SpaceX’s growth.picture alliance&sol;Getty Images&rpar; When will SpaceX turn profitable? <\/p>\n

SpaceX has said in its filing<\/a> that capital expenditures will increase “substantially” in the future and that it plans to use “a range of debt and equity financing solutions” to fund those investments.<\/p>\n

According to analyst estimates<\/a>, between 2026 and 2030, SpaceX is projected to increase revenue from $35.88 billion to $177 billion.<\/p>\n

Over the next four years, SpaceX<\/a> could deploy approximately $276 billion in capital expenditures.<\/p>\n

Notably, the company<\/a> is projected to turn free cash flow positive in 2030, with a projected FCF of roughly $30 billion.<\/p>\n

SpaceX bond investors will be weighing several factors: a company with a historic brand, massive contracts, and enormous ambitions, but one that still needs to prove it can earn more than it spends.<\/p>\n

Related: Michael Burry makes a bold call on the SpaceX trade<\/a><\/p>\n

This story was originally published by TheStreet<\/a> on Jun 19, 2026, where it first appeared in the Investing<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Wall Street has a new favorite trade: lending money to artificial intelligence. NVIDIA, Alphabet, Amazon, and Oracle have…\n","protected":false},"author":2,"featured_media":749105,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,2574,254,255,64,63,1071,438,359858,3120,2291,5437,105],"class_list":["post-749104","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-amazon","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-bloomberg","tag-company","tag-debt-markets","tag-elon-musk","tag-nvidia","tag-spacex","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/749104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=749104"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/749104\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/749105"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=749104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=749104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=749104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}