SpaceX Made a Huge Pivot in Its Business, but the Market Hasn't Caught on Yet

Yahoo Finance ·

There's no shortage of excitement about the revenue potential for Space Exploration Technologies ( SPCX +0.15% ) , better known as SpaceX. Some analysts see it reaching trillions of dollars in annual sales across its launch services, connectivity business, and artificial intelligence segment. That said, nobody expects it to be a straight line up and to the right. In fact, SpaceX could see a major revenue inflection this year thanks to a huge pivot in its AI segment. The shift speaks volumes about the current state of the business and its potential going forward. And while the market is cheering some of the headline numbers, it may be underappreciating the implications for the company's finances and the stock's performance. Over the last few weeks, SpaceX has signed several deals to provide compute to other AI companies :

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