SpaceX Stock Soars on Musk's AI Revenue Prediction

SpaceX stock surged 11% on Wednesday after Elon Musk told employees that AI revenue could surpass all other company revenue as early as September.

Musk made this announcement during an all-hands meeting, which was recorded and posted on X. He emphasized the importance of AI in SpaceX's future, saying it has become 'an extremely important part' of the company's plans.

The likely driver behind this growth is SpaceX's compute leasing contract with Anthropic, the maker of Claude, as well as another upcoming contract with Alphabet's Google.

However, despite the bullish news, some investors may be concerned about SpaceX's cash burn and valuation. The company has been spending heavily on its AI efforts, which may make it difficult for long-term investors to justify buying in.