Should You Buy SpaceX Stock Below $120?

It seems similar conscionable yesterday, Elon Musk was anointed the world's archetypal trillionaire by superior markets. Now, with Space Exploration Technologies (NASDAQ: SPCX) banal down 43% from highs acceptable successful the days pursuing its archetypal nationalist offering (IPO), Musk's nett worthy is adjacent to getting chopped successful fractional arsenic bearish sentiment sets in.

Are we inactive acold from intrinsic value, oregon is SpaceX banal a screaming bargain astatine $120 oregon below? When looking astatine the numbers, the reply is clear.

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Huge maturation potential, but astatine what cost?

Wall Street and the tech assemblage hyped up the SpaceX archetypal nationalist offering (IPO) due to the fact that of the immense maturation imaginable astatine play with this abstraction system and artificial quality (AI) stock. The cardinal connection successful that connection is "potential."

SpaceX is the person successful commercialized rocket launches, but it is simply a comparatively tiny business, revenue-wise, fixed its existent $1.5 trillion marketplace capitalization. In 2025, the abstraction conception lone generated $4 cardinal successful income and really mislaid money. SpaceX's gross and nett chiefly travel from its connectivity segment, Starlink outer internet. This conception is increasing 50% twelvemonth implicit twelvemonth and deed $11.4 cardinal successful gross past year.

Where determination is adjacent much maturation imaginable is SpaceX's AI segment, which lone did $3.2 cardinal successful gross past twelvemonth and is burning a boatload of superior each 4th connected infrastructure costs. SpaceX has turned astir and sold contracts for this information halfway infrastructure to AI competitors similar Google Cloud, which volition pb to beardown gross maturation this year.

The question is: At what outgo was this gross generated, fixed $10 cardinal successful superior expenditures for the consolidated concern successful the archetypal 4th of 2026?

Everything is banking connected AI request maturation

With SpaceX, the banal terms is not going to beryllium driven by its namesake business, but by its assertive investments into AI infrastructure. For one, it has a monolithic terrestrial information halfway concern connected Earth that is good implicit capableness to service its interior services, specified arsenic the Grok chatbot. This is wherefore it is selling its information halfway capableness to 3rd parties that are competing straight with Grok, specified arsenic Anthropic.

Long-term, SpaceX believes it tin physique information halfway compute capableness successful orbit astatine a cheaper outgo than connected Earth. Again, this program relies connected the insatiable request for AI information halfway infrastructure to proceed for the decennary ahead.