Shares of SpaceX (SPCX) climbed roughly 3% in Monday premarket trading, rebounding from a sharp sell-off at the end of last week. On Friday, the stock dropped 6.37%, closing at $134.72, down $9.17 on the day, after trading in a range of $134.50 to $140.20.

The Friday decline came amid a broader technology sell-off, as investors questioned whether heavy spending on AI infrastructure will pay off. SpaceX sits directly inside that debate, committing tens of billions of dollars to AI data centers and chips while its revenue base is still taking shape. Customer concentration added to the pressure: Bloomberg reported that Anthropic accounted for 34.5% of SpaceX's third-quarter revenue, making it the company's largest customer and leaving roughly a third of quarterly revenue dependent on a single client's spending.

Space Exploration Technologies Corp. (SPCX) remains below the $150 opening price from its June IPO. Its 52-week range runs from $104.83 to $225.64.

Terafab Talks Reopen

DigiTimes reported that SpaceX and Tesla have restarted talks with TSMC over Terafab, the planned chip factory intended to produce semiconductors for AI computing and other uses. According to Dan Nystedt, a research executive at TriOrient, the discussions could address who would operate the plant and how it would be funded. The negotiations tie together two of the most capital-intensive links in the AI supply chain: TSMC already manufactures Nvidia's Blackwell processors, the same chips filling Musk's Colossus 2 buildings.

The renewed negotiations would mark a shift from Musk's stance in October, when he said SpaceX and Tesla would build and run Terafab themselves, permitting TSMC only to sublease part of the site.

Musk expects a first test chip around May or June 2027, with volume production in the third quarter of 2028. He has described that timeline as highly ambitious, and plans of this scale tend to slip, making the dates worth monitoring.

Colossus 2 and Capital Spending

Musk also provided an update on Colossus 2, the AI computing complex in Memphis. Two buildings at the site each hold 220,000 Nvidia GB300 chips used for AI training. A third building should be running by the end of November with the same number of chips, while a fourth, expected to open in December, will hold about 200,000 chips dedicated to AI inference.

Musk is targeting roughly 1.2 million Blackwell chips at the complex by year-end.

Defending the spending on X, Musk wrote that "our capex efficiency is greatly underestimated." The comment was a reply to Kyle Reidhead of Milk Road, whose model estimates SpaceX will need about $470 billion in capital spending over five quarters and projects quarterly revenue near $122 billion by late 2027. Those figures are his estimates, not company guidance. The gap between outside models and SpaceX's own disclosures captures the uncertainty at the heart of the AI spending debate.

SpaceX itself expects fourth-quarter capital spending of $35 billion to $40 billion. In the third quarter, capex rose 185% to $19.6 billion, with 83% directed toward AI.

Third-Quarter Results

Third-quarter revenue rose 161% year over year to $14.58 billion. AI sales surged 830% to $7.6 billion, accounting for 52% of the total.

Other segments grew as well. Starlink revenue increased 69% to $5.2 billion, with 13.6 million subscribers, while launch revenue rose 6% to $1.8 billion from 12 launches.

Analyst Coverage

Wall Street remains largely positive on the stock. Of the analysts covering SPCX, 29 rate it a Buy, five hold a Hold rating, and one rates it a Sell, with an average price target of $250.34, implying about 86% upside from Friday's close.

Monday's premarket move left SPCX up about 3%, with investors watching for the Gun Range building to come online by the end of November, the fourth Colossus 2 building to begin inference work in December, and any signal on who would operate and fund Terafab.

This article is based on reporting by CoinCentral: SpaceX (SPCX) Stock Pops 3% Premarket as Musk Revisits Terafab Plans With TSMC.