Micron (MU +2.11%) stock defied today’s market sell-off to jump 3.5% through 3:40 p.m. — and for a reason that may surprise you.

In a note earlier this week, Canadian private equity shop Lynx Equity told investors that even though the SpaceX (SPCX 5.22%) IPO is over, and even after the space company’s shares are up 28% from Monday’s opening price, there’s still a way for investors to make money on the SpaceX IPO: by buying Micron (MU +2.11%) stock.

SpaceX is flush with cash now

SpaceX made history last week, both scoring a gigantic valuation (currently $2.5 trillion — quite a lot for a space stock with no profits) and raising $80 billion in cash.

Next, SpaceX must figure out how to deploy all this cash to keep its growth going. Lynx thinks SpaceX will spend quite a lot of this cash on semiconductors.

While still mostly thought of as a “space company,” the tech giant that IPO’ed last week is actually more of an AI stock — as SpaceX demonstrated yesterday when it splashed out $60 billion in stock to buy Cursor. In time, some investors believe SpaceX’s AI business could be worth $30 trillion annually.

Micron Technology

Today’s Change

(2.11%) $21.58

Current Price

$1042.34

What this means for Micron

For SpaceX to come anywhere near fulfilling this dream, however, it’s going to need to build a huge AI business — and spend heavily on AI chips and the memory chips that support AI inference work.

This means more money flowing to Nvidia (NVDA 1.38%), for example (which is in fact Lynx’s favorite play on SpaceX), and also more money flowing to Micron (MU +2.11%) as well.

The best news of all? Even valued at 20x sales after this year’s run-up, Micron stock is still 6x cheaper than SpaceX!