Shares of Intuitive Machines (LUNR 18.17%) are jumping on Wednesday, up 12.8% as of 2:55 p.m. ET. The rise comes as the S&P 500 and Nasdaq Composite gained 0.6% and 0.5%, respectively.
The space exploration company's stock is moving higher after a Wall Street analyst gave the stock a buy rating just weeks after a major announcement that will see the company team up with a U.K. start-up working to fabricate semiconductors in space.
LUNR gets a new buy rating
An analyst at the investment bank Craig-Hallum initiated coverage of Intuitive Machines stock with a buy rating and a price target of $17.00, a significant upside from today's price. The analyst cited an escalating space race between the U.S. and China as the main driver of future growth. China has a goal of returning humans to the Moon by 2030, and the U.S. is seeking to do so as well.
Intuitive Machines plans to power in-outer-space semiconductor production
The company will team up with U.K.-based Space Forge to integrate the latter's microgravity semiconductor manufacturing payload into Intuitive Machines' Zephyr spacecraft. This will allow the manufacturing of advanced semiconductor components that can only be created in a low- or no-gravity environment and would accelerate U.S. technology development.
Image source: Getty Images.
Speaking of the company's new partnership, Chief Technology Officer Tim Crain was quoted as saying that "the value of space exploration is in what we're able to bring back to Earth," and that "enabling this value at scale requires a routine and reliable Earth return capability. Intuitive Machines is addressing that need head-on with the State of Texas backing our Earth Reentry Program."
I think that Intuitive Machines is an exciting company with a lot of momentum behind it. Its stock is not cheap, but there is long-term potential here for investors comfortable with elevated risk.
