SpaceX Shares Rise on Spectrum Acquisition and AI Expansion Plans

Space Exploration Technologies Corp. (SPCX) shares rose nearly 4% to $166.86 during Friday premarket trading, supported by broader market gains and positive growth developments. However, during regular trading hours, the stock fell 4.19% to $160.60. The initial positive momentum followed the acquisition of nationwide 800 MHz low-band spectrum, which aims to complete Starlink cellular coverage across the United States.

The spectrum acquisition is expected to establish complete nationwide cellular coverage. Additionally, the company is reportedly planning to secure $40 billion in financing, consisting of $10 billion in bank loans and $30 billion in investment-grade debt, to purchase graphics processing units from NVIDIA Corporation (NVDA). This expansion would boost its high-margin AI computing business, which already generates revenue by renting excess capacity to Alphabet Inc. (GOOGL) and Anthropic. Analysts responded by raising their price target on the stock to $230 from $220, representing roughly 37% upside from its recent closing price.

Investors will watch whether the company successfully secures the proposed $40 billion in financing and how quickly it can monetize the new chips. The stock's high valuation, trading at roughly 137 times next-12-month earnings estimates, remains a key consideration. Market participants will also monitor the rollout of the nationwide cellular network and the financial impact of high-margin revenues from Starlink and computing services.