SpaceX stock trades 10% above its IPO price as analysts pivot to AI-driven growth, though skeptics warn the current $2 trillion valuation limits future upside for investors.
SpaceX is currently undergoing a strategic pivot from a space-exploration firm to an AI-infrastructure powerhouse, with analysts like Timothy Horan citing its ability to scale computing capacity as a primary growth driver. While the company projects a massive revenue jump to $100 billion by year-end, driven largely by its neocloud business, investors remain divided over whether this growth is already fully priced into its $2 trillion valuation.
The company expects cloud services, specifically its neocloud business, to be the largest contributor to its revenue growth.
Critics like Mark Yusko argue that at a $2 trillion starting valuation, the company would need to reach a $20 trillion market cap to provide a 10x return, which is considered unrealistic.
Lockup expirations allow early investors and employees to sell their shares, which increases the supply of stock available for trading and can put downward pressure on the share price.
SpaceX shares are trading at $147.98, roughly 10% above their $135 IPO price, as Wall Street shifts its focus from aerospace to the company's burgeoning AI and cloud infrastructure business. While analysts like Oppenheimer's Timothy Horan see a path to $280, critics warn that the company's $2 trillion valuation leaves little room for significant future returns.
Analysts believe SpaceX's ability to deploy infrastructure rapidly positions it to capitalize on the AI boom, with cloud services and AI-related revenue projected to become the company's largest growth drivers.