SpaceX stock held above its IPO price after Needham raised its price target to $250 despite growing warnings that an AI stock bubble could threaten financial markets.
summary
- Needham raised SpaceX’s price target to $250 and maintained a Buy rating despite growing concerns about an AI bubble.
- Bank of England Governor David Bailey has warned that the collapse in AI stocks could spill over into the economy and impact monetary policy.
- SpaceX stock holds above $135 support, with technical indicators showing bearish momentum fading within a bearish channel.
According to Needham, the investment bank She raised her goal on SpaceX shares from $200 to $250 while maintaining a buy rating, arguing that recent artificial intelligence developments and upcoming launch milestones could support the company’s valuation.
The upgrade comes even as SpaceX stock remains under pressure after a sharp decline from its post-listing highs.
Shares were trading at around $136 at the time of writing on July 15, down 0.18% on the day after briefly falling to their IPO price of $135 earlier this week. The stock fell below its debut Nasdaq price of $150 on July 7, as investors continued to take profits after its strong listing rally.
Needham sees artificial intelligence and spacecraft as emerging catalysts
Needham attributed its high rating to two near-term developments related to Elon Musk’s artificial intelligence strategy and SpaceX’s launch schedule. The bank said the launch of Grok 4.5 on July 8 fits into Musk’s efforts to rebuild the company’s artificial intelligence software, a development it believes could boost investor confidence.
The investment bank also noted the planned launch of Starship Flight 13 on July 16. According to Needham, a successful mission could expand SpaceX’s commercial opportunities and serve as another catalyst for the stock.
The bullish call contrasts with growing concerns about AI-related valuations. On July 8, former White House economic advisers Jared Bernstein and Ryan Cummings warned that the AI bubble continues to inflate as technology companies continue to increase spending on AI.
These concerns have gained new attention after Bank of England Governor David Bailey to caution The sharp correction in AI stocks could spill over into the broader economy. Such a downturn may eventually require central banks to respond with measures such as lowering interest rates to limit the economic damage, Bailey said.
Even with these warnings, investor appetite for AI companies has remained steady. Reports indicate that DeepSeek is preparing a Initial public offering At a valuation of about $75 billion, it added to expectations with another major AI listing. The planned flotation comes in the wake of reports that… OpenAI Anthropic is also preparing to go public.
The technical picture points to a key breakout level
The hourly chart shows SpaceX shares trading within a downward channel that has led to lower price action since early July. Although the broader short-term trend remains bearish, the stock has rebounded from the support level near $135, where the lower limit of the channel and the psychological support level meet.
Momentum indicators indicate that selling pressure may be easing. The RSI has rebounded to around 36, keeping the stock close to oversold territory with no reversal confirmed yet. Meanwhile, the MACD is still below zero, but its histogram has stabilized significantly, indicating weak downward momentum.
For buyers, the first technical hurdle is near the upper border of the channel at around $137 to $138. A move above that area could pave the way toward $140, while a sustained breakout could allow the stock to retest its debut price on the Nasdaq of $150. Conversely, if the support at $135 fails, the downward channel indicates that the current downtrend may continue.
Institutional investors continued to add exposure despite the recent decline. Ark Investment It was purchased for approximately $21.3 million Valued SpaceX shares on July 13, expanding a position that began with a $528 million purchase when the company debuted on the Nasdaq on June 12 under Cathie Wood’s leadership.
