Wall Street Bank Warns SpaceX IPO Could Trigger Large Sell-Off in Popular Semiconductor Stocks

SpaceX’s upcoming IPO could trigger a broad sell-off in leading semiconductor stocks, according to BNP Paribas analysts. The bank warns that retail investors may be substantial buyers of SpaceX while needing cash to fund allocations, potentially unwinding existing chip positions and passive exposures. Retail and passive flows into SpaceX could reach about $50 billion, with a 366-day lockup and 100% founder share restrictions under a Goldman Sachs-led syndicate, amplifying market-structure effects. Levered ETFs now hold over $175 billion, and selling from these products could magnify pressure on winners like Micron, Nvidia, Broadcom, AMD, and ASML. Momentum in semiconductors remains at risk despite recent gains.