SpaceX (SPCX) shares have rebounded sharply in recent sessions, climbing more than 30% from their all-time low of $104.8 to $136 in premarket trading. The recovery has contributed to a notable increase in Elon Musk's net worth, which rose by nearly $100 billion to $817 billion. Despite the rebound, the stock remains well below its all-time high.

Revenue Growth Accelerates

SpaceX's most recent quarterly results underscore continued business expansion. Second-quarter revenue surged 92% year-over-year to $7.8 billion. The connectivity segment, driven primarily by Starlink, generated $4.2 billion as its connected customer base expanded. The company's AI division, composed of xAI products, grew from $818 million to $2.56 billion. The growth in xAI revenue places SpaceX-affiliated operations among the fastest-growing AI-related businesses, as demand for large language model infrastructure and compute capacity has scaled rapidly across the technology sector.

Current-quarter revenue has reached $13 billion. Analysts project full-year revenue of $44.2 billion, a substantial increase from the $18.5 billion recorded last year. Revenue is then expected to climb to $90.2 billion the following year, though actual results may exceed those estimates.

Expanding Footprint in Data Centers

SpaceX is increasingly positioning itself as a participant in the data center industry, leasing surplus capacity to external clients. Management has indicated that deploying data centers in space could become a core competitive advantage going forward. The push comes amid intensifying demand for AI compute infrastructure, with hyperscalers and specialized providers racing to expand capacity to meet enterprise workloads.

The company has secured several large data center agreements. Anthropic is reportedly paying $1.2 billion per month under a multi-billion-dollar deal. Google is contributing $950 million monthly, and Reflection AI is paying $150 million. These arrangements could open additional commercial opportunities, particularly as competitors such as CoreWeave have already signed deals exceeding $99 billion in total value. Other firms including Nebius, IREN, and TeraWulf have also expanded their respective deal pipelines, reflecting the breadth of competition emerging in the AI infrastructure leasing market.

Beyond data centers, SpaceX's Starlink segment continues to see growth potential as global broadband demand increases. Starlink's expanding satellite constellation positions it as a leader in low-Earth-orbit connectivity, though Amazon's Project Kuiper and other entrants are working to build competing networks.

Technical Indicators

From a technical standpoint, SPCX has moved above the $133 resistance level, corresponding to the 23.6% Fibonacci retracement. The stock also formed a double-bottom pattern near $104, a formation typically associated with reduced short-selling activity below that threshold.

Shares have crossed above the 50-period Exponential Moving Average (EMA), and the Relative Strength Index (RSI) has reached 70, indicating strengthening momentum. The next commonly referenced technical level is $165, the 50% Fibonacci retracement point, which sits roughly 20% above current trading levels.

Potential Risks

Several risk factors remain. A rumored merger between SpaceX and Tesla, an electric vehicle manufacturer, has been cited as a concern, with questions raised about whether such a combination would produce meaningful synergies. Additionally, the stock's forward price-to-earnings ratio has prompted discussions about valuation levels, particularly relative to established aerospace and telecommunications peers.

Source: The Market Periodical