Ron Baron expects SpaceX to return 20 to 30 times from its IPO price over the next 10 to 15 years

Ron Baron has a new shorthand for the companies he believes will define the next decade of wealth creation. Rather than the familiar Magnificent Seven, he is calling the group the “MAG 8,” adding SpaceX to the roster of mega-cap tech names. The addition is not a casual one: Baron Capital expects a 20 to 30 times return from SpaceX’s IPO price over the following 10 to 15 years.

We think that in SpaceX we're going to make somewhere 20 times, 30 times from the IPO price. 20 to 30 times next 10 to 15 years. Ron Baron

The confidence echoes Baron’s track record with another Elon Musk company. Baron said recently that his firm made roughly $7.7 billion in profit on a $4 billion investment in Tesla, a result he described as a check he ran that same day. He does acknowledge that Tesla’s position is softer than it once was, saying “the competitive advantage they had in EVs, it’s not as strong today as it was 5 years ago.”

On the broader AI stack, Baron’s view is that the model layer will be squeezed out over time. He predicts LLMs will be commoditized, which in his framing makes the underlying compute and data-center infrastructure the more defensible bet. He also flagged xAI’s Grok as a fast-closing rival to Anthropic, citing pricing that is “65% cheaper than Anthropic” and predicting the two services will reach comparable capability within roughly six months.