SpaceX Stock Forecast as it Plans to Launch Google AI Chips Into Space

SpaceX stock traded around $150 on Oct. 1 as investors balanced new AI infrastructure developments against an expanding post-IPO share float.

SPCX has largely consolidated in the mid-$140s to mid-$150s after rebounding from its August lows. The stock remained below its recent September highs as investors awaited another scheduled share unlock.

A separate catalyst came from Google, whose first Project Suncatcher orbital AI experiment is riding aboard a SpaceX Falcon 9.

SpaceX to Launch Google Chips Into Space

Elon Musk’s Space Exploration Technologies (SpaceX) has big ambitions. One of them is to deploy data centers in space, a move that would make it the first company to do so. The benefit is that these data centers would be powered by solar energy, which is readily available in orbit and up to eight times more intense than what reaches the Earth’s surface.

The company is now planning to do that for Google today. These Tensor Processing Units (TPUs) chips will be launched using its Falcon 9 rocket.

This is a major development for SpaceX and Google as it could launch a new frontier in the AI space. It is also a mutually beneficial situation since Google is SpaceX’s biggest investor with a stake worth over $82.4 billion.

At the same time, Google has entered into a major deal with SpaceX, under which it is paying over $925 million per month for its AI business.

The most recent results showed that its AI business is one of its fastest-growing segments. Its revenue jumped to $2.56 billion in the second quarter, down from $818 million in the same period last year.

The segment has also inked more deals this year. It has a deal with Anthropic, which is paying it over $1.2 billion, and another one with Reflection AI. This division will help it achieve its expected revenue growth. Yahoo Finance data shows that the company is expected to make over $44.5 billion this year and $112 billion next year.

SpaceX Share Unlocks

One reason why the SpaceX stock has remained in a narrow range is because of the ongoing share unlocks. Since its unlock, the company has had several unlocks, which have allowed its employees to start selling their shares.

These unlocks will continue this quarter, with the next tranche expected on October 9. Over 328 million shares will become eligible for sale on that day. Additionally, the six-month lockup expiry will end in December, with over 800 million shares being eligible for sale.

Elon Musk will be able to sell his shares starting from June 12 next year. Historically, companies tend to struggle when more shares are coming to market.

Despite these unlocks, analysts remain bullish on SpaceX, citing its strong revenue growth and growing market share in the data center business. Some of the most bullish analysts are from companies like Goldman Sachs, Morgan Stanley, Royal Bank of Canada (RBC), and Deutsche Bank.

SpaceX Stock Price Technical Analysis

The four-hour chart shows that the SPCX share price has remained under pressure in the past few weeks. A closer look shows that the stock is slowly forming an ascending triangle pattern. The two lines of this triangle are nearing their confluence, where breakouts normally happen.

SpaceX has remained slightly above the Supertrend indicator, which is a bullish sign. Also, the stock has remained above the 50-period Exponential Moving Average (EMA).

Therefore, the stock is likely to see a strong bullish breakout in the near term. If this happens, the next target to watch will be $200, which is about 35% above the current level. A drop below the $130 support level will invalidate the bullish outlook.

This article is for informational purposes only and does not constitute financial or investment advice. Analyst targets and technical patterns do not guarantee future returns.