Space Exploration Technologies (SPCX +4.36%) stock saw another day of strong gains in Tuesday’s trading, with the stock rising 4.8% in the daily session. Meanwhile, the S&P 500 fell 0.6%, and the Nasdaq Composite was off 1.2%. Notably, SpaceX stock had been up as much as 17.2% earlier in the day’s trading.

Bullish momentum for SpaceX has continued following the company’s initial public offering (IPO) on June 12, and news that the tech specialist has finalized a $60 billion deal to acquire artificial intelligence (AI) company Cursor has spurred positive valuation moves. In addition to general excitement surrounding the stock, recent comments from CEO Elon Musk and investment analysts have helped push the company’s share price higher.

SpaceX soars on AI news

SpaceX stock has been red hot following its IPO last week, and the company’s share price moved higher today following the announcement that the company had secured its $60 billion acquisition of Cursor. While SpaceX is best known for its rocket launching and Starlink mobile and internet communication services, the company has actually positioned AI compute services as central to its long-term growth strategy.

Space Exploration Technologies

Today’s Change

(4.36%) $8.39

Current Price

$200.90

What’s next for SpaceX?

Cursor provides coding and other AI technologies that look poised to help SpaceX increase its competitive positioning compared to Anthropic and OpenAI, and the closing of the deal seemingly represents another promising strategical step for Elon Musk’s company. SpaceX has identified AI compute as its single biggest growth market, and integrating Cursor could help the company accelerate its expansion ambitions. SpaceX looks richly valued after its post-IPO rally, but it’s possible that the tech company will wind up delivering sales and earnings growth that pave the way for continued valuation growth.