Jim Cramer fears SpaceX's IPO could be 'destructive' for the rest of market

CNBC's Jim Cramer said Friday he is growing increasingly concerned about signs of speculative excess in the IPO market. The " Mad Money " host warned he didn't want to "end up with another Cerebras," arguing that the highly anticipated debut of Elon Musk's SpaceX could fuel another wave of speculative buying. SpaceX is expected to go public in June and could release its prospectus as soon as next week , CNBC reported Thursday. However, after the blockbuster debut of AI chipmaker Cerebras Systems on Thursday, Cramer said demand for shares of Elon Musk's rocket company could be even more intense. Cramer noted that various media reports suggest the offering could value SpaceX — home to Starlink satellite internet, social-media site X, and the Grok chatbot — between $1.75 trillion and $2 trillion . While he said he understands investor enthusiasm around Musk and the company's businesses, he warned the stock could quickly become detached from fundamentals if underwriters release too few shares to the public. "If SpaceX issues just a sliver of stock...this company could have a $5 trillion valuation," he said. "SpaceX would create a bubble unto its own," he said. Cramer warned that it could be a precedent-setting event for other high-profile artificial intelligence companies such as OpenAI and Anthropic , which are considering public offerings of their own. …