SpaceX shares jump 11% on AI-driven growth bets

Shares of SpaceX surged 11% on Tuesday after investors bet on Elon Musk’s artificial intelligence initiatives as a driver of future growth for the aerospace company.

The gain came amid reports suggesting Musk is expanding SpaceX’s AI efforts beyond autonomous rockets to include commercial applications in sectors such as robotics and logistics. Analysts at major banks raised price targets and upgraded the stock, citing potential synergies between AI development and SpaceX’s existing satellite and space infrastructure.

Morgan Stanley maintained an overweight rating on SpaceX, increasing its price target to $180 from $150, while Goldman Sachs similarly upgraded the stock to buy from neutral, setting a $165 target. The upgrades followed a string of AI-related announcements from Musk, including plans to integrate AI systems into Tesla’s manufacturing and robotics divisions.

SpaceX, privately held, does not disclose regular financial metrics, but industry estimates place its valuation at roughly $180 billion earlier this year. The company’s Starlink satellite internet service and reusable rocket technology remain core revenue drivers, though investors now appear focused on the long-term potential of AI-driven innovations.

The rally reflects broader investor enthusiasm for companies positioned at the intersection of space technology and AI, a theme that has gained traction following advancements in machine learning and robotics. SpaceX’s existing AI applications, such as autonomous landing systems for its Falcon rockets, are seen as precursors to more expansive commercial deployments.

The stock’s performance also aligns with Musk’s strategy of leveraging AI across his ventures, including Tesla and xAI, his dedicated AI research company. While SpaceX has not confirmed specific AI product timelines, the market’s reaction underscores confidence in Musk’s ability to translate AI research into scalable commercial solutions.