Norway’s largest sovereign wealth fund, worth $2.3 trillion, has announced a $1.22 billion investment in Elon Musk‘s Space Exploration Technologies Corp (NASDAQ:SPCX, NASDAQ:SPCX). This marks the first time the fund has publicly disclosed an investment in the company.
The Norwegian fund, primarily sustained by the country’s oil and gas revenues, reported a record profit of $184.3 billion for the first half of the year, largely driven by technology stocks. The fund is recognized as the world’s largest single investor, owning an average of 1.5% of all listed companies globally.
The fund disclosed its 0.05% stake in SpaceX, valued at $1.22 billion as of June 30, on Tuesday. While this investment is substantial, it pales in comparison to its other tech holdings.
The fund owns a 1.28% stake in Nvidia Corp. (NASDAQ:NVDA) worth $62 billion, a 1.24% stake in Apple Inc. (NASDAQ:AAPL) worth $52 billion, a 1.17% stake in Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) worth $50 billion, a 1.27% stake in Microsoft Corp. (NASDAQ:MSFT) worth $35 billion, and a 1.7% stake in Taiwan Semiconductor Manufacturing (NYSE:TSM) worth $34 billion.
The Norwegian fund’s portfolio includes approximately 7,100 companies worldwide, spanning bonds, property, and renewable projects.
SpaceX Stock Gains Despite Valuation Doubts
Morgan Stanley recently projected that SpaceX’s stock could hit $600. The firm expects Cursor’s annual recurring revenue to reach $8 billion by year-end and $33 billion by 2030. Analyst Adam Jonas said growing evidence around the Cursor-Grok partnership could narrow the valuation discount on SpaceX’s AI business and potentially drive significant stock gains.
Billionaire investor Ron Baron predicted the company could be worth $14 trillion in 10 years, based on the potential of SpaceX’s AI business and the revenue from Starlink, its global connectivity venture.
Despite concerns about the increase in insider-held shares becoming eligible for trading, the stock gained nearly 3% on the day eligibility kicked in. This suggests that the market had already absorbed much of the lockup anxiety.
SpaceX Faces Valuation And Volatility Risks
SpaceX’s revenue surged 92% year over year to $7.8 billion, while its net loss narrowed to $541 million. However, capital spending rose to $18.4 billion, including about $15.8 billion for AI infrastructure. Investor Steve Eisman questioned whether the company is primarily a rocket, satellite or AI company, arguing its valuation looks expensive, but Elon Musk’s loyal following gives the company a unique advantage.
Meanwhile, investor Gary Black remains cautious on SpaceX, pointing to the stock’s sharp volatility. He noted that shares surged to $200 before plunging 45% within 60 days, arguing that such swings reinforce his cautious stance despite continued bullish sentiment from other investors.
SPCX Price Action: On a year-to-date basis, the stock declined 17.19%, as per Benzinga Pro. On Tuesday, SpaceX ended 3.93% lower at $133.29.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Credit: Jack Gruber-USA TODAY/Reuters Connect