Key Insights
- SpaceX stock has pulled back in the past few days.
- Google and Nvidia have revealed large stakes in SpaceX.
- The stock is forming a bullish flag pattern on the four-hour chart.
SpaceX stock has pulled back as the recent bull run stalls. After peaking at $149.6 on August 12, it has retreated to $139.72 as investors book profits. This retreat may be brief as top companies reveal their stakes in the company.
Nvidia and Google Have Big Stakes in SpaceX
In the recent SpaceX earnings report, Elon Musk said that his companies will continue using Nvidia chips in the foreseeable future. This was a big move, as SpaceX’s data center business is seeing strong demand from companies like Google and Anthropic.
What Musk did not reveal at the time is that Nvidia is a big investor in SpaceX. Recent filings show that the company has a $21 billion stake in SpaceX.
That made it the fifth-largest shareholder after Google, FMR, and Gigafund Management. Last week, Norway’s $2 trillion sovereign wealth fund revealed a position.
Nvidia has slowly become one of the biggest players in the investing world. It has made several major investments using the windfall it has received from the ongoing AI boom.
For example, it has committed to invest $100 billion in OpenAI. This is a stake that may surge as the company eyes a $1 trillion IPO.
It also took part in Intel’s rescue last year. Today, its stake in Intel is worth $22 billion, making it the fourth-largest holder. It is also a big investor in CoreWeave and Nebius, two of the biggest neocloud businesses in the world. Nvidia’s other top investments are companies like Anthropic and Lumentum.
Google is the largest SpaceX holder, which partly explains why it has also become a major client. It reached a deal that will see it pay SpaceX $950 million a month to use its compute resources.
Google has also committed to invest up to $40 billion in Anthropic. Anthropic has also committed to paying SpaceX $1.2 billion a month for computing services.
SpaceX’s Business is Doing Well, With Analysts Predicting More Growth
The recently released earnings report showed that SpaceX’s business was doing well across the board. Its space business is seeing more launches from the US government and other commercial clients. At the same time, more people are subscribing to its Starlink service.
Airlines like Alaska Airlines, Qatar Airways, and Hawaiian are also paying it millions of dollars a month for its Starlink service.
The results also showed that its AI business is booming, with its revenue soaring to over $2.5 billion from $818 million in the same period last year. In total, its revenue jumped to $7.8 billion in the second quarter of this year from $4.6 billion in the same quarter last year.
Analysts tracking the company expect it to have more growth in the coming years. Goldman Sachs analysts have predicted that its revenue will jump to $474 billion by 2030. That would be a big move for a company that made less than $19 billion last year.
The estimate is that its revenue will jump to $44 billion this year, followed by $97 billion next year. Also, the company’s capital expenditures, which have contributed to a negative free cash flow, will start improving.
SpaceX Stock Price Technical Analysis
The four-hour chart shows that the SPCX stock has rebounded from $103. That happened earlier this month to a high of $149.60 last week. It is now forming a bullish flag pattern. That’s made up of a vertical line and a downward channel.
SpaceX stock has remained above the 23.6% Fibonacci Retracement level. It has moved above the 50-period moving average. Therefore, there is a likelihood that the stock will have a strong bullish breakout.
It could potentially move to the 50% retracement level of $164. A drop below the support at $120 will invalidate the bullish outlook.
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