SpaceX (SPCX) stock rose 12% on Wednesday to $149.29, marking a 36% gain in five sessions and more than $500 billion in new market value. According to reports from Market Watch, the trigger was the shipment of Grok 4.6 by SpaceXAI, the company's artificial intelligence division. This represents the largest single-day gain for the stock, driven primarily by AI-related developments rather than traditional rocket launches.
The AI division lost $1.26 billion last quarter while generating $2.56 billion in revenue, representing a 247% increase. As reported by Market Watch, the AI unit consumed $15.83 billion of the group's $18.4 billion capital spending, accounting for 86% of the budget for 33% of sales. Connectivity operations, primarily Starlink, covered this loss with $1.66 billion in operating profit. CEO Elon Musk has positioned Grok 4.7 as potentially superior to current models, stating it will exceed all current AI systems due to SpaceX's unique training corpus.
Despite the recent gains, SPCX stock still trades below its $150 debut and 35% under its record near $226. According to Market Watch, Morgan Stanley analyst Adam Jonas flagged the valuation gap on July 27, noting that most investors ascribe zero or negative value to the AI arm due to its cash appetite. However, Jonas disagrees, with more than half of his $300 target price resting on AI performance. The rally represents the market closing this valuation gap, though it occurs on the division that currently generates losses.
Analyst Miles Deutscher from Argus called the Grok 4.6 launch a price win rather than a power win, noting it offers Fable 5 at 80% discount and GPT-5.6 Sol at 60% discount. As reported by Market Watch, Argus analyst Steven Silver upgraded SPCX to Buy on August 7, citing the 247% growth and management's claim of sub-one-year payback on AI hardware. The stock has reclaimed the $135 IPO price after falling 13.6% on August 5 following concerns about chip investor sentiment.
