SPCX shares gained 1.2% during Monday’s premarket session to reach $125.53, showing signs of reversing a six-session decline that drove the stock to its lowest-ever close of $123.99 on Friday — notably beneath its $135 initial public offering price.
Space Exploration Technologies Corp., SPCX
The possible turning point: Friday’s Wall Street Journal disclosure revealed that SpaceX has entered discussions with the Defense Department regarding AI computing capability provision. Should this agreement come to fruition, it would parallel existing contracts with Anthropic and Google, which project approximately $26 billion in yearly revenue when operating at maximum capacity.
SpaceX remained silent when contacted for commentary on the ongoing negotiations.
The aerospace firm’s AI computational backbone relies on its Colossus I and II facilities located in Memphis, Tennessee, assets acquired through the February integration with xAI. Beyond terrestrial operations, SpaceX envisions future AI data centers positioned in space, utilizing solar power generation.
This space-based strategy depends heavily on Starship, SpaceX’s revolutionary fully reusable launch vehicle engineered to reduce orbital access costs from thousands per kilogram to mere hundreds. However, Starship encountered setbacks during the previous week when the 13th experimental launch was cancelled following engine ignition failures. A new attempt has been scheduled for June 23.
During the rescheduled mission, the booster segment must accomplish several critical milestones: successful liftoff, stage separation execution, boostback burn completion, and controlled landing in the Gulf of America. Meanwhile, Starship’s upper stage will endeavor to release 20 Starlink V3 satellites and execute a mid-flight reignition test of one Raptor engine prior to its controlled descent into the Indian Ocean.
Market observers remain vigilant. SPCX has shed approximately 40% of its value since achieving its record high of $201.80 on June 16.
Piper Sandler raised SPCX to a “hold” recommendation on July 17. The comprehensive analyst consensus shows greater optimism: four analysts rate it Strong Buy, 24 recommend Buy, eight suggest Hold, and a single analyst rates it Sell.
Recent coverage additions feature Susquehanna establishing a Neutral stance with a $170 price objective, Wedbush initiating Outperform coverage with a $190 target, TD Cowen beginning with a Buy rating, Needham increasing its price goal from $200 to $250 while maintaining Buy, and Royal Bank of Canada launching with an Outperform rating and $225 target.
The aggregated analyst price target reaches $234.78, significantly exceeding present market valuations.
Regarding financial performance, SpaceX disclosed a $1.27 per-share loss alongside $4.69 billion in revenue for its latest quarter, announced May 7.
Multiple institutional investors established fresh positions in SpaceX throughout the second quarter, among them Atwood & Palmer, Marquette Asset Management, and Burkett Financial Services, although these holdings represented modest allocations.
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