Space Exploration Technologies Corp. (SPCX +9.74%) stock rocketed 11% higher on Wednesday as of 3:02 p.m. ET, while the S&P 500 and the Nasdaq Composite jumped 0.3% and 0.6%, respectively.
Shares of the rocket company rose after it posted a recording of an all-hands meeting on X in which Elon Musk told employees that "AI revenue will exceed all other SpaceX revenue" as early as September.
NASDAQ: SPCX
Key Data Points
Why SpaceX's stock jumped after Musk's all-hands
In the recording, Elon Musk emphasized that AI has become "an extremely important part" of the company's future, adding that the models would be trained on their data, making SpaceX employees "the parents of the AI."
Musk said that AI revenue would surpass the rest of the company in all likelihood by next month and "significantly exceed" it in the fourth quarter. While the details were light, this is likely due to its contract with Anthropic, the maker of Claude, which is leasing AI compute capacity from SpaceXAI (it has another contract that will soon commence with Alphabet's Google).
Image source: Getty Images.
Why I'm still not buying SpaceX stock
This is positive news, but it's not exactly surprising given the already announced compute contracts. It also ignores what SpaceX is spending to earn that revenue. Its AI efforts are wildly expensive, and it is still burning cash at an alarming rate.
I still think SpaceX is overvalued.
