This SpaceX Bear Flips To Being A Bull On The Firm's AI Developments, Sees 70% Stock Upside

PhillipCapital has flipped its stance on SpaceX from ‘sell’ to ‘buy’.

• PhillipCapital executed a rare double upgrade on SpaceX stock, shifting its rating from ‘sell’ to ‘buy’ and tripling its price target to $250. 
• The bullish reversal follows SpaceX's third-quarter report featuring $14.58 billion in revenue, adjusted earnings of $0.45 per share, and its first-ever profitability as a public company. 
• Growth was primarily driven by the company's "super intelligence" (SI) AI cloud services, surging connectivity demand from aviation and Starshield contracts.

Space Exploration Technologies Corp. (SpaceX) shares gained 1.5% on Friday after investment firm PhillipCapital completely reversed its bearish position, upgrading the company's shares from ‘sell’ to ‘buy’.

The bullish outlook was primarily driven by SpaceX’s first-ever quarterly profit as a publicly traded entity. For the third quarter, the Elon Musk-led aerospace and artificial intelligence enterprise reported adjusted earnings of $0.45 per share on revenue of $14.58 billion, comfortably outperforming market expectations.

PhillipCapital also hiked its price target from $75 to $250, implying a gain of nearly 73% from the stock's Thursday close of $147.06.

The Growth Catalysts Behind The Surge

In a research note published Friday, PhillipCapital analyst Glenn Thum explained that the sudden shift into profitability was propelled by artificial intelligence or super intelligence (SI) scaling.

The company's branded "super intelligence" cloud operations benefited from higher rental pricing agreements, while Cursor contributed $608 million beginning in mid-August. 

Meanwhile, SpaceX’s enterprise and government revenue jumped 91% year-over-year, driven heavily by new commercial aviation installations and vital Starshield contract deployments.

However, Thum also warned that full-year 2027 revenue could trail behind projections based on annualized first-quarter guidance. He warned that scaling the company's heavy compute infrastructure will face friction, citing power availability and cooling capabilities as critical operational constraints. 

SPCX Stock: Retail View

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes. 

SPCX stock has lost about 9% since its June listing. 

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