economy
SpaceX shares upgraded. Argus says AI investments will pay off, and don't bet against Musk
SpaceX could continue to bounce back as investments in artificial intelligence begin to pay off, according to Argus.
TL;DR
- Argus Research upgraded SpaceX to 'buy' with a $160 price target, implying 39% upside.
- The upgrade is driven by SpaceX's AI-focused strategy and expected rapid payback on capital investments.
- SpaceX stock has rallied 17% in the past five trading days after previous declines.
- Capital expenditures have increased six-fold, largely due to AI infrastructure development.
- Looming lockup expirations could add selling pressure, but analysts view pullbacks as buying opportunities.
- Argus projects SpaceX revenue to more than double in 2026 and 2027.
- Elon Musk's track record with Tesla is cited as a positive factor.
- The majority of analysts covering SpaceX rate it a buy or strong buy.