SpaceX Stock Drops to $115 Amid Valuation Concerns

Space Exploration Technologies Corp. saw its stock price decline to approximately $115 following an initial surge after its public offering. Despite the dip, the company maintains a market valuation of about $1.5 trillion. This valuation comes as SpaceX reports no net income for 2025, despite generating $18.7 billion in revenue.

Market analysis indicates that the valuation is stretched when compared to companies in the artificial intelligence sector that possess stronger business fundamentals. For instance, Nvidia holds a $5 trillion market cap and generates more than ten times the revenue of SpaceX. Other semiconductor leaders, including Taiwan Semiconductor Manufacturing Company and Broadcom Inc., also maintain higher valuations supported by significantly greater profits and revenues. Broadcom expects a further growth catalyst in 2027 through increased shipments of custom AI chips.