PrediXmarkets — The most profitable piece of the biggest IPO in history is not what you think
Broadcom posted record AI chip revenue. The stock fell. SpaceX starts its roadshow at $1.75 trillion. The profitable part is not what the crowd thinks.
 
Brief
PrediXmarkets
  Market intelligence, condensed.  
— THE OPEN
   

Broadcom posted record AI chip revenue last night. The stock fell.

This morning the largest IPO roadshow in history begins. SpaceX starts pitching investors on a $1.75 trillion valuation. The S-1 shows one profitable segment. It is satellite internet.

Two stories. Same lesson. The money is moving from chips to connectivity.

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A lot of people are still looking at this the wrong way.

They see a big-name IPO story.

They see Elon.

They see headlines.

But they do not yet see where the real opportunity may be hiding.

And that matters.

Because the best opportunities rarely feel obvious at the beginning.

They feel easy to ignore.

Easy to delay.

Easy to come back to later.

Until suddenly everyone is talking about them...

And the chance to get there before the crowd is gone.

That’s why I’m bringing this to you now.

Not at the last second.

Not after the story has been fully picked apart.

But while there’s still time to understand what may be developing behind the SpaceX narrative.

In my view, that’s where the real intrigue is.

Most investors are still focused on the surface.

They have not yet connected the deeper Starlink angle, the broader AI buildout, and the related plays that could benefit if this story keeps accelerating.

That disconnect may not last long.

And once it closes, you may not be looking at the same kind of upside.

You may just be looking at a trade everybody else already discovered before you did.

That’s the part I don’t want you to miss.

Because if this unfolds the way I think it could, the people who moved early may have a very different experience from the people who waited for more confirmation.

Click here and you’ll also get my FREE “SpaceX” pre-IPO recommendation now.

Better to be a little early on something important than a little late to something everyone else already sees.

Yours for peace, prosperity, and liberty, AEIOU,

Dr. Mark Skousen
Macroeconomic Strategist, The Oxford Club

01 Today
 
   
Broadcom’s Record and the Market’s Verdict AFTER HOURS YESTERDAY

Broadcom reported fiscal Q2 revenue of $22.19 billion, narrowly missing the $22.27 billion consensus. AI semiconductor revenue hit a record $10.8 billion, more than doubling year over year. Infrastructure software came in at $7.18 billion, below the $7.32 billion estimate. That was the miss.

Q3 guidance landed at $29.4 billion, above the $28.53 billion consensus, with AI revenue expected to triple to $16 billion. AI bookings exceeded $30 billion. The stock fell sharply in extended trading. CrowdStrike dropped 11% on soft guidance in the same session.

The market did not punish the AI business. It punished the infrastructure around it. The question now is who captures the value between the chip and the user.

   
What the SpaceX S-1 Actually Says About Where AI Profit Lives

SpaceX filed its S-1 amendment on June 1. The roadshow starts this morning. Reuters reports pricing is targeted for June 11 and a Nasdaq debut on June 12 under the ticker SPCX. The target valuation: $1.75 trillion. The planned raise: $75 billion. Goldman Sachs and Morgan Stanley are leading the deal.

The S-1 breaks the company into three revenue lines. Starlink, the satellite connectivity division, generated $11.4 billion in 2025 revenue and $4.4 billion in operating income. xAI, the artificial intelligence division, generated $3.2 billion in revenue and lost $6.4 billion from operations. The one segment that prints consistent profit is the network, not the model.

   
The Tape Pulls Back. Oil Does Not.

Stocks fell from record highs on Wednesday after fresh exchanges of strikes between the U.S. and Iran and reports of targeting in the GCC states. The S&P 500 dropped 0.74%. The Dow fell 1.21%. The Nasdaq lost 0.89%.

Brent crude traded above $98 a barrel. The 10-year Treasury yield held at 4.45%. Bitcoin fell to roughly $67,000, its tenth consecutive session of ETF outflows. The Polymarket contract for a permanent Iran peace deal by July still trades below 50%. The war premium is not leaving the tape.

THE CONNECTIVITY LAYER
Where the profit sits in the largest private-to-public transition in history.
STARLINK OPERATING INCOME
2025 · SpaceX S-1/A
$4.4B
 
STARLINK OPERATING MARGIN
2025 · SpaceX S-1/A
~39%
 
xAI OPERATING LOSS
2025 · SpaceX S-1/A
−$6.4B
 
SPACEX IPO TARGET
$135/share · Reuters
$1.75T
The most profitable division in the most valuable private company in history is not rockets. It is not AI. It is satellite internet. The crowd sees the IPO. The S-1 shows the margin.
↑ Overnight Up
Brent crude ($98)
Gold ($4,490)
Broadcom AI rev ($10.8B)
 
↓ Overnight Down
Broadcom (AH sell-off)
CrowdStrike (−11% AH)
Bitcoin ($67K −3.5%)
02 Worth Knowing
 

No technology company in history has debuted at a valuation above $1 trillion.

The closest precedent is Saudi Aramco, which went public in December 2019 at roughly $1.7 trillion. Aramco’s value was built on the commodity that flows through the Strait of Hormuz. That strait has been effectively closed since March.

SpaceX’s valuation is built on a different kind of infrastructure. Starlink operates roughly 7,000 satellites in low Earth orbit. It carries more than 90% of the world’s space-based internet traffic. Its operating margin is wider than Meta’s or Google’s core advertising segments.

Aramco priced the world’s dependence on physical shipping lanes. SpaceX is pricing the replacement. One of those infrastructure bets is under naval blockade. The other one is in orbit.

WORTH WATCHING

Today — SpaceX roadshow begins. Ciena reports Q2 before the open. Samsara reports Q1 after the close. Both are reads on telecom equipment demand and connected-fleet infrastructure.

Friday, 8:30 a.m. ET — May jobs report. The last major employment number before the June 16–17 FOMC meeting.

June 10 — May CPI. April came in at 3.8%.

June 11 — SpaceX IPO pricing. Polymarket prices 98% odds the closing market cap clears $1 trillion.

June 12 — SPCX Nasdaq debut.

The crowd is focused on what the SpaceX IPO means for Elon. The S-1 is about what Starlink’s margin tells the market about where AI infrastructure profit actually lives. Broadcom’s print last night showed where the chip story hits resistance. The connectivity layer is where the margin sits. The roadshow starts this morning. In eight days, the market will price it.

Real money sees what headlines miss.

— The PrediXmarkets desk
For informational purposes only. Not investment advice.