SpaceX shares surged again on Monday, extending gains from their blockbuster market debut as investors continued to pile into Elon Musk’s rocket and artificial intelligence infrastructure company.
Shares of SpaceX, trading under the ticker SPCX, rose 8% in early trading to $173.67 after jumping 19% during their first day on the Nasdaq on Friday.
The broader market was also higher, with the S&P 500 gaining 1.5% amid optimism surrounding a potential agreement to end the Iran war.
Another reason the stock is surging higher today is that many expect the firm to join the Nasdaq-100 within days.
The move would make it a significant component of exchange-traded funds and other passive investment vehicles that track the benchmark.
Analysts estimate that inclusion could drive between $7 billion and $10 billion in passive inflows as index funds and ETFs adjust their holdings.
Newly public companies must wait at least 12 months before they can be considered for inclusion in indexes maintained by S&P Dow Jones Indices.
IPO momentum continues
The strong follow-through came after underwriters exercised their overallotment option, increasing the total amount raised through the initial public offering to $85.7 billion.
The debut marked the largest IPO on record and attracted heavy trading activity, with more than 500 million shares changing hands on the first day.
SpaceX’s early gains have coincided with a broader rotation into high-growth technology and artificial intelligence-linked companies.
Memory-chip maker Micron Technology was among the few stocks outperforming SpaceX in early trading, while Seagate Technology and Western Digital also posted gains of more than 5%.
Nvidia stock was also up around 2% in early trade.
Musk sets ambitious revenue target
Investor enthusiasm was further boosted by comments from Musk over the weekend.
Responding to a social media post on X referencing a Morgan Stanley revenue forecast, Musk suggested SpaceX revenue could exceed $1 trillion by 2030.
The target would be more than three times higher than Morgan Stanley’s projection and would represent a roughly 66-fold increase from the company’s 2025 revenue level.
A major component of that growth strategy is expected to come from artificial intelligence infrastructure.
SpaceX plans to begin deploying orbital AI data centers in 2028.
The company’s terrestrial data-center operations, which were previously owned by xAI before being merged with SpaceX in February, currently rent computing capacity to customers, including Anthropic and Google.
ARK builds large position
Cathie Wood’s ARK Invest emerged as one of the most notable buyers following the listing.
The investment firm purchased nearly 3.3 million SpaceX shares during the company’s first trading session, building a position valued at more than $500 million by the close of trading.
SpaceX shares were sold in the IPO at $135 and finished their first session at $160.95, representing a gain of more than 19%.
The ARK Innovation ETF accounted for most of the purchases and ended the day with SpaceX representing 3.28% of its portfolio.
Valuation debate intensifies
Despite the strong start, not all analysts are convinced the rally is sustainable.
CFRA initiated coverage of SpaceX on Friday with a Sell rating and a 12-month price target of $115, implying significant downside from current levels.
The research firm cited the company’s aggressive growth plans, elevated valuation expectations, and substantial capital requirements.
Morningstar analyst Nicolas Owens also expressed caution in a June 8 note, valuing SpaceX at $63 per share and describing the stock as overvalued.
Even as skeptics question the valuation, investors appear focused on the company’s long-term ambitions in launch services, satellite communications, artificial intelligence infrastructure, and future orbital computing networks.
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