Stock Market Today, Oct. 23: SpaceX Achieves Rare Double Upgrade to Buy on AI Growth

Space Exploration Technologies (NASDAQ:SPCX), better known as SpaceX, a launch services, satellite broadband, and space infrastructure provider, closed at $147.49, up 1.89%. Premarket analyst upgrades and regular-session coverage of tower-lease talks helped keep investors focused on growth and mobile ambitions.

Trading volume reached 109.4 million shares, coming in nearly 1% above its three-month average of 99.4 million shares. Space Exploration Technologies IPO'd in 2026 and has fallen 8% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 0.52% to 7,623, while the Nasdaq Composite (NASDAQINDEX:^IXIC) slipped 0.21% to 25,955. In aerospace, defense, and satellite communications, Rocket Lab (NASDAQ:RKLB) closed at $52.60, up 2.69%, and AST SpaceMobile (NASDAQ:ASTS) finished at $39.79, up 2.63%, as space-linked peers drew steady attention.

What this means for investors

On Friday, Oct. 23, SpaceX captured a rare double upgrade from Wall Street. Phillip Securities analyst Glenn Thum upgraded shares from Sell to Buy, bypassing Hold entirely. He also tripled the price target from $75 to $250 per share, implying an impressive upside potential of over 70% from its recent trading levels.

The dramatic reversal from bear to bull was driven by SpaceX's blowout third-quarter earnings report, which highlighted the spectacular growth of the company's artificial intelligence division, called Super Intelligence (SI).

SpaceX's SI business hit sales of $7.6 billion in Q3, up from $813 million last year, helping to grow total revenue 161% year over year to $14.6 billion. CEO Elon Musk stated the company's annual recurring revenue could reach a range between $500 billion and $1 trillion by the end of 2027. SI's success contributed to the bullish sentiment from Phillip Securities.

SI isn't the only factor galvanizing shares. SpaceX is reportedly negotiating tower leases as it seeks at least 80,000 U.S. cell sites in a bid to broaden its wireless mobile addressable market. The news of intensifying carrier competition caused telecom stocks to drop.

Robert Izquierdo has positions in Rocket Lab and Space Exploration Technologies. The Motley Fool has positions in and recommends AST SpaceMobile and Rocket Lab. The Motley Fool has a disclosure policy.