SpaceX (SPCX) Lands Reflection AI Deal While KeyBanc Flags Starship Risks

SpaceX (NASDAQ:SPCX) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

On June 22, KeyBanc initiated the stock as Sector Weight; noting that it is fairly valued and that it doesn’t see a clear reason to buy or sell the stock at current levels.

SPCX possesses significant disruptive growth avenues, though we believe this is reflected in current valuation and risk/reward appears balanced, in our view.

While SpaceX has huge plans through its Starlink and Starship rocket, the firm is not yet enthusiastic about them. It noted how Starship, the giant reusable rocket, is yet to mature and has suffered setbacks, pushing back timelines several years.

While we believe Starship will ultimately achieve success, we take a conservative approach on its development timeline. Risk/reward appears balanced until we achieve greater visibility on Starship’s progress.

A more immediate concern, the firm noted, is how the structured lockup schedule will gradually release additional shares into the market over time. This will increase the number of shares available for trading, but also lead to “near-term liquidity uncertainty.”

In separate news, Reuters reported how AI startup Reflection AI has signed a deal with SpaceX that will grant the startup ​access to additional computing capacity at the company’s Colossus 2 data center. This move makes Reflection AI the latest outside company to secure AI computing capacity at SpaceX’s Colossus infrastructure.

Space Exploration Technologies Corp. primarily provides satellite-based broadband services. However, its businesses also span rocket launch services, satellite internet and connectivity, artificial intelligence (AI), and cloud computing.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.