Alphabet's Space Play Is About to Take Off in 2026—Here's Why the Moon Isn't the Limit

The Hidden Trillion-Dollar Bet Nobody’s Talking About

Most investors know Alphabet through Google’s search dominance—commanding roughly 90% of the search market globally. But beneath the surface lies a portfolio of assets that could fundamentally reshape the company’s value. Among these, one investment is positioned to “go to the moon” in 2026: its $900 million stake in SpaceX from 2015.

That stake, currently worth an estimated $100+ billion based on SpaceX’s recent $800 billion valuation, represents a windfall waiting to happen. When SpaceX launches its IPO in late 2026, Alphabet’s roughly 7% ownership could deliver outsized returns that dwarf most corporate investments.

Why SpaceX’s IPO Will Be a Game-Changer

Elon Musk has publicly targeted a $1.5 trillion valuation for SpaceX’s public debut—a figure that would make Alphabet’s stake worth well over $100 billion. To put this in perspective, that single investment could represent 10-15% of Alphabet’s current market value, all stemming from a decision made over a decade ago when SpaceX was valued at just $12 billion.

The timing makes sense. SpaceX has become a launch machine in 2025 alone, deploying over 100 rockets with more than 70 dedicated to Starlink satellites. This constellation now powers a thriving high-speed internet service with 8+ million subscribers across 150 markets and partnerships with roughly two dozen airlines. The company has also become indispensable to U.S. government space operations while capturing commercial launch contracts.

Beyond Starlink: The Next Growth Frontiers

SpaceX’s ambitions extend far beyond satellite internet. The company is actively exploring orbital data centers powered by solar energy and equipped with free space-based cooling systems. This concept, while audacious, has attracted serious interest from tech giants including Alphabet itself.

In fact, Alphabet is betting on this vision through Project Suncatcher, a partnership with satellite imagery provider Planet Labs (in which Alphabet holds a 10% stake). The initiative will launch two prototype satellites in 2027 to test orbital data center feasibility and evaluate how hardware performs in the space environment.

Additionally, Alphabet has invested in AST SpaceMobile, which develops technology enabling satellite networks to connect with standard smartphones—another frontier that could unlock new revenue streams.

The Rest of Alphabet’s Portfolio Remains Strong

While SpaceX represents the most explosive opportunity, Alphabet’s other businesses continue to deliver. Google Cloud remains the fastest-growing segment, powered by enterprise demand for AI infrastructure. The company’s custom Tensor Processing Units (TPUs) provide significant cost advantages, while its Gemini large language model offers customers a powerful foundation for building AI applications.

Waymo, Alphabet’s robotaxi division, has hit 450,000+ weekly paid rides and is rapidly expanding beyond the U.S. into Tokyo and London. The company’s quantum computing efforts, highlighted by the Willow chip’s error-correction breakthroughs, position Alphabet ahead in a field that could transform computing in the coming decades.

YouTube remains the planet’s dominant video platform, generating substantial ad revenue. Google Maps, Gmail, and Google Workspace maintain their market leadership, while AdSense continues monetizing content across the broader web.

The Valuation Story

Trading at a forward P/E ratio of 27 times 2026 analyst estimates, Alphabet appears reasonably valued for a company with this much upside potential. The SpaceX IPO alone could serve as a significant catalyst, but the investment case extends far beyond that single event. Between AI leadership (complete tech stack including Tensor Processing Units and Gemini), autonomous vehicles, quantum computing, and space assets, Alphabet is positioned across multiple transformative technologies.

Bottom Line

Alphabet’s SpaceX stake represents the kind of asymmetric opportunity that defines generational wealth creation. While most investors focus on Google search or cloud computing growth, few appreciate the scale of value locked away in this space company investment. When SpaceX reaches public markets in 2026, expect Alphabet’s hidden asset to become front-page news—and potentially worth far more than current estimates suggest.