SpaceX stock has steadied above its IPO price after Needham raised its price target to $250. According to Needham, the investment bank lifted its target on SpaceX shares from $200 to $250 while maintaining a buy rating, arguing that recent AI developments and upcoming launch milestones could support the company’s valuation.
The upgrade comes even as SpaceX stock remains under pressure after a sharp pullback from its post-listing highs. Shares traded around $136 at the time of writing on July 15, down 0.18% on the day after briefly falling to the IPO price of $135 earlier this week.
Key Developments
Needham attributed its higher valuation to two near-term developments linked to Elon Musk’s AI strategy and SpaceX’s launch schedule. The bank said the release of Grok 4.5 on July 8 fits with Musk’s efforts to rebuild the company’s AI program, a development it believes could strengthen investor confidence. The investment bank also pointed to the planned Starship Flight 13 launch on July 16, which could expand SpaceX’s commercial opportunities and act as another catalyst for the stock.
Market Context
The bullish call stands in contrast to growing concerns about AI-related valuations. Former White House economic advisers Jared Bernstein and Ryan Cummings warned that the AI bubble continues to inflate as technology companies keep increasing spending on artificial intelligence. Bank of England Governor David Bailey also cautioned that a sharp correction in AI stocks could spill over into the broader economy.
Technical Analysis
The hourly chart shows SpaceX shares trading inside a descending channel that has guided price action lower since early July. Although the broader short-term trend remains bearish, the stock has bounced from support near $135. Momentum indicators suggest selling pressure may be easing, with the Relative Strength Index recovering to around 36 and the MACD histogram flattening considerably.
Institutional Investment
Institutional investors have continued adding exposure despite the recent decline. ARK Invest purchased approximately $21.3 million worth of SpaceX shares on July 13, extending a position that began with a $528 million purchase when the company debuted on Nasdaq on June 12
Based on reporting from crypto.news.