IPO ETFs Could Benefit From SpaceX Excitement

One way to gain exposure is through the First Trust US Equity Opportunities ETF (NYSEARCA: FPX). With an expense ratio of 0.61%, the ETF tracks newly public companies during their early trading period—often when interest and volatility are at their peak. As of this writing, GE Vernova (NYSE: GEV) and SanDisk (NASDAQ: SNDK) are the fund’s top two holdings.

Instead of betting on a single IPO, FPX offers diversified exposure across multiple recent listings. Despite periodic disappointments in high-profile IPOs, the ETF has delivered strong long-term performance, climbing from roughly $11 in 2009 to recent highs near $189.

The key advantage is diversification. Rather than relying on any one IPO to succeed, investors benefit from overall enthusiasm and capital flows into the IPO market.

Renaissance IPO ETF Offers Broad IPO Exposure

Another option is the Renaissance IPO ETF (NYSEARCA: IPO). With a 0.6% expense ratio, the fund focuses on some of the largest and most liquid newly public U.S. companies. For example, as of this writing, CoreWeave (NASDAQ: CRWV) is the fund’s largest holding.

Its structure is designed to reduce single-stock risk while maintaining exposure to high-growth entrants. Since late 2023, the ETF has rallied from around $30 to about $49. Continued strength in the IPO market could push it higher, particularly if major offerings like SpaceX come to market with strong demand.

Private Market Funds Offer Pre-IPO Exposure

For investors looking beyond traditional ETFs, the Fundrise Innovation Fund (NYSE: VCX) offers exposure to private companies.

The fund has seen explosive recent gains, driven by demand for access to pre-IPO names. Its portfolio is heavily weighted toward artificial intelligence and data infrastructure, alongside investments in fintech, aerospace, and software.

Notably, it includes exposure to companies widely expected to go public in the future—giving investors a way to participate before IPO events occur.

Speculative SpaceX IPO Trades Carry Higher Risk

More speculative investors may look at Destiny Tech 100 (NYSE: DXYZ).

Shares have been fueled by excitement around its exposure to private “unicorn” companies, including SpaceX and other high-profile AI names. The stock has shown sharp momentum, jumping significantly in a short period.

Which SpaceX IPO Investments Carry the Most Upside?

If even a handful of these companies go public at strong valuations, the fund could see meaningful upside. However, volatility is likely to remain elevated given its concentrated and speculative nature.

Another reason investors are focusing on IPO-related funds is the improving backdrop for growth stocks. Falling interest rate expectations and stronger demand for artificial intelligence infrastructure have helped revive investor appetite for high-growth technology companies. If market conditions remain favorable, analysts expect more private firms to consider public offerings over the next 12 to 18 months, potentially creating additional momentum for IPO-focused funds.

Investors should also recognize that many SpaceX-related trades remain highly speculative. Because SpaceX is still privately held, funds with indirect exposure can experience sharp volatility based on headlines, valuation estimates, or shifts in investor sentiment. That makes diversification especially important for investors looking to participate in the IPO theme without taking excessive single-stock risk. While a SpaceX IPO could become one of the biggest market events in years, broader IPO market strength may ultimately create opportunities across multiple sectors beyond aerospace alone.

A SpaceX IPO is shaping up to be more than just a single market event—it’s acting as a catalyst for renewed interest across the IPO landscape. 

For investors, that creates multiple ways to participate. Diversified ETFs like FPX and IPO offer broad exposure, while funds like VCX and DXYZ provide more targeted—and higher-risk—opportunities. As anticipation builds, positioning ahead of the IPO wave may prove just as important as the IPO itself.

The bull case for GE Vernova revolves around a perfect storm of three secular forces: surging electricity demand from data centers, the need for a more stable and flexible grid, and the ongoing energy transition. Its Power and Electrification segments are already delivering double‑digit revenue growth and expanding EBITDA margins, backed by a record equipment and services backlog that provides multi‑year earnings visibility.

Management has reaffirmed 2025 guidance calling for mid‑single‑digit to mid‑teens organic growth and high‑single‑digit adjusted EBITDA margins. The company is also forecasting expected free cash flow between $3.0 billion and $3.5 billion.

With capital allocation focused on targeted M&A, grid capacity, and shareholder returns, GE Vernova offers utility-like defensiveness, with higher growth tied directly to AI-driven electrification. For investors seeking infrastructure exposure to the AI theme without taking pure‑play semiconductor or data center risk, GEV is starting to look like a core position candidate.

Prolec GE Acquisition Strengthens Grid Leadership

GE Vernova’s move to acquire the remaining 50 percent of Prolec GE solidifies its role as a critical supplier to North American utilities, industrials, and data centers. Prolec GE is a leading grid equipment supplier expected to generate about $3 billion of revenue this year with a roughly 25 percent adjusted EBITDA margin, making the business both scale‑enhancing and margin‑accretive.

By consolidating the joint venture, GE Vernova removes contractual restrictions that limited its ability to sell transformers in North America. This will immediately improve commercial integration, the customer experience, and manufacturing flexibility across seven global sites, including five in the U.S. and one in Mexico.

Management expects Prolec GE to contribute about $600,000 of incremental EBITDA in 2026 on a full‑year basis, with $60 to $120 million of annualized cost synergies by 2028 and additional revenue upside as it expands transformer offerings and capacity to serve the AI‑driven grid upgrade cycle.

GE Vernova Electrification Growth Accelerates

Beyond transformers, GE Vernova brings a broad portfolio that directly underpins AI‑related electricity demand: gas and renewable power generation, high‑voltage transmission, grid automation, storage, and power conversion.

• The Power segment, which includes heavy-duty gas turbines, aeroderivatives, nuclear, and hydro, is posting solid double-digit revenue growth, with segment EBITDA margins in the low to mid-teens, supported by long-cycle service contracts and rising turbine orders.
• Electrification – home to Grid Solutions, Power Conversion & Storage, and software – is where the AI grid story really accelerates, with 3Q25 revenue up over 30 percent and EBITDA margin above 15 percent, driven by strength in HVDC, switchgear, synchronous condensers, and storage solutions that enhance grid stability and flexibility.

In fact, orders in the Electrification sector are now roughly twice the revenue in some areas, and backlog has climbed to over $30 billion, reflecting robust demand from utilities and data centers seeking to reduce congestion, connect distributed energy resources, and modernize aging infrastructure.

Analysts Turn Bullish as GEV Fundamentals Improve

Fundamentally, GE Vernova is executing. In its third-quarter 2025 earnings report, the topline grew about 10–12 percent organically, adjusted EBITDA nearly tripled year over year, and free cash flow year‑to‑date has already exceeded the prior full year. Segment guidance points to organic revenue growth of roughly 6–7 percent in Power, around 25 percent in Electrification, and continued EBITDA margin expansion at the consolidated level. While Wind remains a drag, losses are narrowing as onshore profitability improves and offshore contract issues roll off.

On December 10, GEV stock received an upgrade from Royal Bank of Canada. The firm moved GEV from a Sector Perform to an Outperform with a $761 price target. Bank of America reaffirmed its Buy rating on GEV stock and raised its price target from $725 to $804. Both targets are well above the consensus price target of $724..15.

GEV Stock Technical Setup Points to More Upside

GE Vernova’s chart is starting to look like the price of a must‑own infrastructure compounder rather than a cyclical industrial. The stock has broken out to two new highs, trading around 713 dollars with a fresh 52‑week high near 725 dollars, well above its 50‑day and 200‑day moving averages.

That momentum comes alongside expanding volume, suggesting institutions are still building positions rather than distributing. With a high valuation multiple on current earnings, any consolidation or pullback toward the 50‑day line could be viewed as an opportunity to add exposure to the AI‑grid theme.

GE Vernova Supports the AI-Driven Power Surge

GE Vernova offers a rare combination: utility‑like resilience, visible multi‑year growth, and direct leverage to the AI‑driven surge in electricity demand and grid investment. The Prolec GE acquisition, accelerating Electrification segment, and strengthening fundamentals give the story both a credible growth runway and a cleaner capital allocation framework. For investors looking to express the AI infrastructure trade through power and grid assets rather than semis or data centers, GEV increasingly looks like a core, long‑duration holding.