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When Space Exploration Technologies (SPCX) launched its initial public offering, investor demand swelled to $250 billion in comparison to a $75 billion fundraising plan. Clearly, there is euphoria, and within a few days of listing, SPCX approached $3 trillion in valuation. A cool-off seemed very likely, and the stock has corrected meaningfully from highs to the current market valuation of about $2 trillion.
As SPCX stock takes a breather, it’s a good time to accumulate. Recently, Oppenheimer set a price target of $250 for the stock. Timothy Horan, Oppenheimer's tech analyst, believes that the valuation is based on the potential in the AI space. In the near term, SpaceX is likely to benefit from the $2 trillion communications market. Further, Horan opines that physical AI will be one of the “fastest-growing areas of AI over the next four to five years.”
