SpaceX Stock Surges on Analyst Optimism and TSMC Deal Talks
SpaceX shares soared on Monday, with early gains reaching 6.4% before settling at a 4.9% increase by midday. The surge came amid bullish commentary from Morgan Stanley analyst Adam Jonas, who reaffirmed his overweight (buy) rating and $300 price target for the company. Jonas argued that SpaceX (NASDAQ:SPCX) is “cheap and getting cheaper”, despite its seemingly high valuation when compared to AI-focused mega-caps.
The analyst highlighted that SpaceX's 2028 estimated enterprise value to earnings before interest and taxes (EBIT) ratio stands at 30, nearly double that of a basket of major AI stocks. However, when adjusted for growth, SpaceX's multiple drops to 0.3, below the 0.5 multiple of the AI-centric group, which includes Amazon, Alphabet, and Meta Platforms. Jonas suggested that investors may be underestimating the growth potential of SpaceX's xAI segment.
Adding to the optimism, SpaceX CEO Elon Musk confirmed ongoing discussions with Taiwan Semiconductor Manufacturing (NYSE:TSM) about a potential partnership. The deal would involve TSMC building and operating a semiconductor manufacturing facility to supply chips exclusively to Tesla, SpaceX, and xAI. Musk described the talks as “just discussions, but something may come of it.”
Despite the excitement, the article cautioned that SpaceX still faces significant challenges, particularly in executing its ambitious vision for AI data centers in space.