SpaceX shares closed above their initial public offering (IPO) price for the first time since falling below the level after its second-quarter earnings report, as renewed investor interest in the company’s artificial intelligence (AI) ambitions helped drive a sharp recovery.
The stock closed at $138.74, up 4.23%, moving firmly above its $135 IPO price. SpaceX shares had fallen as low as $108.27 during the post-IPO sell-off after pricing at $135 on 12 June and opening at $150 on their first trading day.
The recovery marks a significant turnaround for the company, whose shares gained 22.8% during the week ended 7 August, rising from a $108.37 close on 31 July to $133.11. Friday alone saw the stock surge 15.83%, its largest single-day gain since its market debut.
Several developments have fuelled the rebound, including positive analyst coverage, stronger-than-expected investor demand and SpaceX’s expanding investment in AI infrastructure.
Argus Research upgraded SpaceX to a Buy rating with a $160 price target, suggesting further upside from recent levels. Raymond James has also maintained a Strong Buy rating, citing progress towards Starship Flight 13.
Investor concerns over a large wave of insider selling also eased after 911.5 million shares became eligible for sale on 6 August. Although approximately 497 million shares changed hands across Thursday and Friday, representing about 54.6% of the newly unlocked block, the stock still gained about 6% on Thursday.
The company also received a boost from its plans with Tesla to develop a $16.8 billion semiconductor manufacturing complex, known as Terafab, in Grimes County, Texas.
The facility is designed to produce one terawatt of computing capacity annually and is expected to create at least 3,000 jobs. TechCrunch has reported that the overall investment could eventually reach $119 billion if the project expands through multiple phases.
The Terafab plans have strengthened the view among retail investors that SpaceX is increasingly becoming an AI infrastructure play rather than simply a space exploration company.
Vanda Research recorded $22.7 million in net retail buying during the first hour of trading on the day of SpaceX’s post-earnings sell-off, more than three times the stock’s average opening-hour inflow.
“Retail continue to see SPCX as a transformational AI story,” Vanda Research said in commentary cited by Yahoo Finance, adding that investors increasingly view the company through the lens of AI rather than space exploration or interplanetary travel.
That shift in investor perception was also partly responsible for the initial pressure on the shares.
SpaceX reported second-quarter 2026 revenue of $7.814 billion on 4 August, representing a 92% year-on-year increase and exceeding Wall Street expectations. Its Starlink satellite internet service also reached 12 million subscribers.
However, the company’s aggressive spending on AI infrastructure unsettled investors concerned about near-term cash flow. AI-related capital expenditure reached $15.83 billion during the quarter, contributing to total capital expenditure of $18.4 billion.
Chief executive Elon Musk defended the spending during the earnings call, saying the company was building AI computing capacity “at scale” faster than its competitors while improving its AI models.
Despite the renewed momentum, analysts expect volatility to remain elevated as more shares become available for trading.
Carolane de Palmas, a market analyst at ActivTrades, said the increase in available shares was likely to keep volatility high even without significant selling pressure. Further lock-up expiries are scheduled through 8 December.
SpaceX’s performance could also be influenced by developments elsewhere in the space and technology sectors.
Rocket Lab and AST SpaceMobile were scheduled to report their second-quarter 2026 results after Monday’s market close. Their results could influence investor sentiment towards SpaceX as the stock attempts to consolidate above its $135 IPO price.
US inflation data expected during the week could provide another test for the broader equity market. A higher-than-expected inflation reading could put pressure on high-valued technology stocks, potentially limiting SpaceX’s recent gains.
For now, however, the stock’s return above its IPO price represents a notable recovery from the post-earnings sell-off and underlines the growing importance investors are placing on SpaceX’s AI ambitions.
