TLDR
- SpaceX stock rose 1.6% in early Tuesday trading to $137.10, recovering from its $135 IPO price close on Monday
- JPMorgan reiterated an Overweight rating and $240 price target on SPCX, implying roughly 78% upside
- Analyst Doug Anmuth praised Grok 4.6’s rapid improvement and expects Grok 5 by December
- SpaceX acquired Cursor, an AI coding tool, which closed August 14 and adds ~$4 billion in annual recurring revenue
- SpaceX plans to launch AI computing satellites using space-optimized Nvidia Vera Rubin chips, with orbit planned for 2027
SpaceX stock opened Tuesday at $137.10, up 1.6% from its $135 June IPO closing price the day before. A bullish note from JPMorgan appears to have given the stock a nudge.
Space Exploration Technologies Corp., SPCX
JPMorgan analyst Doug Anmuth reiterated an Overweight rating and $240 price target on SpaceX. That target implies about 78% upside from current levels.
Anmuth called out the pace of Grok’s development. Grok 4.6, released earlier this month, jumped five points on the Artificial Analysis Intelligence Index compared to Grok 4.5, despite only arriving about a month later.
According to Anmuth, Grok now trails only Anthropic’s Claude Fable 5 and Claude Opus 5 on that leaderboard. He expects Grok 5, due by December, to be a big step up in scale and capability.
Near-term AI revenue at SpaceX is largely driven by premium compute deals. But JPMorgan expects improving Grok monetization, especially among enterprise customers, to become a bigger driver over time.
Cursor Acquisition Adds Fuel
SpaceX’s acquisition of Cursor closed on August 14. Cursor brings roughly $4 billion in annual recurring revenue, with about 75% coming from business customers.
JPMorgan views the deal as a key move for SpaceX’s enterprise AI push. Cursor data has already been incorporated into supplemental training for Grok, and the firm says it has seen model performance improvements as a result.
The deal also gives SpaceX a richer go-to-market strategy as it pushes deeper into enterprise AI.
Despite not being profitable over the last twelve months, analysts predict SpaceX will reach profitability this year.
AI Satellites and Space Chips
CEO Elon Musk retweeted a post from Nvidia about its Vera Rubin GPUs, adding that SpaceX helped design a space-optimized version of the chip. That version is planned for orbit in 2027, with larger scale expected in 2028.
Vera Rubin is Nvidia’s latest AI chip, offering faster compute and better token throughput than its Blackwell predecessor.
Space is a tough environment for chips, with higher radiation and different cooling needs. Nvidia is developing space-ready hardware specifically to support SpaceX’s planned constellation of AI computing satellites.
Musk’s theory is that powering those satellites with solar energy will give SpaceX a cost edge over ground-based data centers that rely on conventional electricity.
For that plan to work, the Starship rocket needs to be ready. It is still in testing, with test flight 14 expected in September.
SpaceX stock has traded as high as $225 and as low as $105 since its June IPO.
The S&P 500 was up 0.3% and the Dow Jones was up 0.1% at the time of writing.
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