On June 18, Dan Taylor from Man Group remarked that SpaceX’s valuation is not directly tied to the broader health of the AI sector. Instead, he suggested that its market performance is more of a reflection of investor confidence in CEO Elon Musk himself, rather than being driven by the narrative surrounding AI. According to Taylor, while SpaceX may face challenges in reaching Musk’s ambitious revenue target of $1 trillion by 2030, investors’ faith in Musk—bolstered by his proven track record as an entrepreneur—continues to underpin the company’s valuation. This so-called “trust premium” is a significant factor in sustaining SpaceX’s market worth.

Looking ahead, Taylor noted that the pace at which AI-related companies issue new shares will largely hinge on whether the current surge in AI spending can be sustained over time. He also highlighted a notable divergence within the tech sector: semiconductor-related stocks have surged, while shares of Software as a Service (SaaS) firms have declined. Taylor suggested that this split is likely to persist until the commercial payoffs of AI investments become more apparent.