SpaceX briefly reclaims $2 trillion market cap: Inside the massive stock rally fuelling Elon Musk’s company

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.

Increasing focus on AI

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.

SpaceX stock rebounds 38% from August lows

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.