Alphabet's Space Investments Could Deliver Massive Returns in 2026 and Beyond

The Unlisted Opportunity Worth Over $100 Billion

Most investors focus on Alphabet’s search dominance and AI ambitions, but the company has quietly accumulated a powerful portfolio of space-related investments—and one of them is about to transform into real shareholder value. Alphabet’s approximately 7% stake in SpaceX, which is eyeing a 2026 IPO at a potential $1.5 trillion valuation, could be worth over $100 billion following the company’s public debut. This marks a substantial upside opportunity that few investors are discussing.

To put this in perspective: Alphabet invested just $900 million in SpaceX back in 2015, when the rocket company was valued at roughly $12 billion. Today, SpaceX commands an estimated $800 billion valuation in secondary market transactions—a more than 60-fold appreciation in a decade. If SpaceX achieves the $1.5 trillion valuation Elon Musk has publicly targeted for its IPO, Alphabet’s minority stake alone could deliver returns that exceed what many expect from the company’s core advertising and cloud businesses combined.

Why SpaceX Is About to Rocket Higher

The timing matters significantly. SpaceX has demonstrated explosive growth across multiple revenue streams. The company launched over 100 rockets in 2024 alone, with more than 70 dedicated to Starlink—its rapidly expanding satellite internet service. Starlink now serves 8 million customers across 150 markets globally, even reaching remote and underserved regions. The service has gained traction with roughly two dozen commercial airlines, underscoring its expanding commercial applications.

Beyond satellite internet, SpaceX generates revenue through government contracts and commercial launch services. The company is also exploring an ambitious new frontier: orbital data centers powered by solar energy and utilizing free space-based cooling. While experimental, this concept is attracting serious attention from tech giants, including Alphabet itself, which is partnering with Planet Labs (in which Alphabet holds a 10% stake) on Project Suncatcher. Two prototype satellites are scheduled to launch in 2027 to validate this technology.

Additionally, Alphabet maintains stakes in AST SpaceMobile, which is developing technology to connect satellite networks directly to standard smartphones—another transformative application.

The Company Behind Google Remains a Diversified Tech Powerhouse

While SpaceX represents Alphabet’s most significant hidden opportunity, the parent company continues to expand its core capabilities. Google remains the internet’s primary gateway, commanding approximately 90% of the global search market through Chrome, Android, and its search revenue agreements with major device manufacturers. YouTube operates as the world’s largest video platform, and Google Cloud is experiencing accelerated growth driven by enterprise demand for AI infrastructure.

Alphabet has built substantial competitive advantages in cloud computing through custom Tensor Processing Units (TPUs) and its Gemini language model—capabilities it now integrates across its entire product ecosystem. The company’s robotaxi subsidiary, Waymo, surpassed 450,000 weekly paid rides and continues expanding into Tokyo and London. The company is also advancing quantum computing, with its Willow chip demonstrating real-time error correction—a major technical breakthrough.

A Stock Trading at Reasonable Valuation With Asymmetric Upside

Alphabet currently trades at approximately 27 times 2026 estimated earnings—a reasonable valuation for a company controlling such dominant market positions while simultaneously developing next-generation technologies. The SpaceX IPO prospect in 2026 creates a unique catalyst: shareholders would receive both continued exposure to Alphabet’s core AI-powered businesses and a significant influx of value from the space sector’s maturation.

The combination of Alphabet’s established market power, cloud computing momentum, emerging robotaxi economics, and space sector participation creates a compelling long-term investment thesis. The SpaceX stake alone represents material optionality that markets have yet to fully price in.