Space Exploration Technologies closed at $147.49 on Friday, October 23, gaining 1.89% as a rare double upgrade from Phillip Securities drove investor focus toward the company's artificial intelligence growth. The stock, which has fallen 8% since its 2026 initial public offering, saw trading volume reach 109.4 million shares, a figure nearly 1% above its three-month average of 99.4 million shares.
The catalyst for the move was an upgrade from Phillip Securities analyst Glenn Thum, who moved his rating from Sell to Buy, bypassing a Hold recommendation entirely. Thum also tripled his price target from $75 to $250 per share, a shift that implies potential upside of over 70% from recent trading levels. The analyst's reversal from bearish to bullish was primarily driven by the company's third-quarter earnings report, which highlighted the rapid expansion of its artificial intelligence division, known as Super Intelligence.
Financial results showed that the Super Intelligence business generated $7.6 billion in sales during the third quarter, a significant increase from $813 million in the same period last year. This growth contributed to a 161% year-over-year rise in total revenue, which reached $14.6 billion. CEO Elon Musk stated that the company's annual recurring revenue could reach a range between $500 billion and $1 trillion by the end of 2027. The strong performance of the SI unit was a central factor in the bullish sentiment expressed by Phillip Securities.
Beyond its AI operations, Space Exploration Technologies is reportedly negotiating tower leases to secure at least 80,000 U.S. cell sites. The company aims to broaden its addressable market for wireless mobile services, a move that has intensified competition among carriers and led to declines in telecom stocks. While broader market indices slipped, with the S&P 500 falling 0.52% to 7,623 and the Nasdaq Composite dropping 0.21% to 25,955, space-linked peers held steady. Rocket Lab closed at $52.60, up 2.69%, and AST SpaceMobile finished at $39.79, up 2.63%.