Argus Upgrades SpaceX to Buy With $160 Target as AI Spending Lifts Shares 15.8%
Updated
Updated · Yahoo Finance Australia · Aug 10
Argus Upgrades SpaceX to Buy With $160 Target as AI Spending Lifts Shares 15.8%
3 articles · Updated · Yahoo Finance Australia · Aug 10
Summary
Argus on Aug. 7 raised SpaceX to Buy from Hold and set a $160 target, helping drive the stock up 15.8% in one session to $133.11.
The call flipped Wall Street’s main concern: Argus said SpaceX’s heavy AI outlays are attractive because some computing investments are paying back in less than a year.
SpaceX had just reported $18.4 billion in second-quarter capital spending, including $15.83 billion for AI infrastructure—well above roughly $13 billion analysts expected—and signaled similar spending ahead.
That spending initially triggered a sell-off because the AI unit still posted a roughly $1.3 billion operating loss, raising fears returns may lag the cash burn.
Argus is effectively betting those returns scale fast enough to support a rich valuation of about 20 times estimated 2027 revenue, with SpaceX projected to reach $110 billion in sales.