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Shares of Elon Musk’s SpaceX have been on a strong rally lately, as renewed investor optimism helps the stock recover from its post-listing losses. The optimism is being driven by the company’s expanding AI infrastructure ambitions, Starlink business, unmatched launch capabilities, progress on Starship, and growing exposure to government and defence spending. So far this week, the stock has gained a further 5.45% to $150, marking its highest level in over a month. The rally has also briefly pushed SpaceX's market capitalisation back above $2 trillion in today's trade. If the stock closes the week higher, which currently appears likely, it will mark its second consecutive weekly gain. The rebound underscores Wall Street's confidence in SpaceX's ability to capitalise on opportunities across AI computing infrastructure, satellite broadband, commercial space launches and next-generation space transportation. Investors also appear to have shrugged off the increase in the supply of shares after millions of shares were freed for trading following the expiry of lock-up periods. A major driver of SpaceX's growth strategy is its increasing focus on artificial intelligence infrastructure. In its first earnings report since going public, the company said it spent $18.4 billion on capital expenditure during the June quarter, a six-fold increase from a year earlier, with the bulk of the investment directed towards expanding its AI computing infrastructure. The aggressive spending is expected to continue as SpaceX builds computing capacity, accelerates Starship production and develops next-generation Starlink satellites, while also positioning itself as an alternative AI cloud provider by leasing Nvidia-powered infrastructure to customers. The strategy reflects a broader shift in the AI economy. Instead of treating GPUs and data centres solely as internal assets, SpaceX is monetizing them by leasing capacity to outside customers. That effectively puts the company in competition not only with AI developers but also with cloud and infrastructure providers that rent computing power. SpaceX has already signed several long-term computing agreements. In June, Alphabet's Google agreed to pay $920 million per month under a cloud services contract running through mid-2029. The company has also signed a similar agreement with Anthropic. Elon Musk's space, satellite and artificial intelligence company has experienced a volatile run in the stock market since pricing its record $86 billion IPO on June 11. The shares surged in the first few days of trading before reversing course and shedding more than $1 trillion in market value through early August. Since then, however, the stock has staged a strong recovery, rising 38% to trade at around $150 in five weeks. It closed August with a sharp 32% gain, recovering most of the 37% losses recorded in July. Looking ahead, the stock will need to maintain this momentum to revisit its post-listing high of $225.65. Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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