SpaceX Stock Climbs 8% on AI and Starship Momentum
SpaceX (SPCX) stock surged 8% on Monday, reaching a high of $172.47 before closing at $171.09. The surge came on heavy trading volume, with over 133 million shares exchanged, a 29% jump from the average. The stock has gained more than 15% over the past five trading days.
Morgan Stanley reiterated its Buy rating for SpaceX, setting a $300 price target and calling the stock “cheap and getting cheaper” based on growth-adjusted metrics. The broader analyst consensus sits at “Moderate Buy” with an average price target of $218.68. However, some firms remain cautious, with Susquehanna downgrading the stock to Underperform and HSBC initiating coverage with a Hold rating and a $115 target.
Several factors are driving the rally. SpaceX renamed its AI division from SpaceXAI to SpaceXSI, aligning with a push to rebrand artificial intelligence as “super intelligence.” Elon Musk also confirmed talks with TSMC (TSM) about a dedicated chip facility, known as Terafab, involving Intel (INTC) and Tesla (TSLA). Bernstein estimates SpaceX’s AI revenue could grow nearly 500% next year, with reports of potential AI deals with Microsoft.
On the rocket side, SpaceX completed three launches in about 13 hours this week and is preparing to reattempt a U.S. Space Development Agency mission. Starship is also in the mix, with up to two more test flights targeted this month. Musk’s return to a role with the Pentagon’s Project Meridian is also fueling investor interest. COO Gwynne Shotwell sold over $52 million worth of stock under a pre-set trading plan, cutting her ownership stake by about 12%. Fundamentally, SpaceX posted a loss of $0.09 per share in its last quarterly report, beating estimates, with revenue up 92% year-over-year to $7.81 billion.