SAN FRANCISCO: SpaceX shares surged again Tuesday, lifting <a href="https://pakistantv.com/article/newly-minted-trillionaire-musk-under-fire-over-belfast-riots" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Elon Musk</a>&#39;s rocket company into the world&#39;s top five in market value for most of the session as a record-breaking IPO gives way to a torrid buying frenzy. Shares of SpaceX, formally Space Exploration Technologies Corp, finished up nearly 5% at $201.80, giving it a market value of $2.64 trillion. That placed the company a hair below Amazon&#39;s $2.65 trillion at the end of Tuesday&#39;s session after leading the online shopping platform most of the day. SpaceX also briefly eclipsed <a href="https://pakistantv.com/article/microsoft-openai-loosen-ties-as-rivalry-simmers" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Microsoft</a>, which is fourth on the list. The latest rise came as SpaceX announced it will acquire <a href="https://pakistantv.com/article/elon-musks-ai-tool-grok-was-used-in-strikes-against-iran-us-govt" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">artificial intelligence</a> (AI) coding startup Cursor for $60 billion, a deal designed to further cement the Texas-based company near the nexus of the AI boom. The SpaceX fever partly stems from enthusiasm over its growth potential, including AI. But at least as important are dynamics that have nothing to do with the company&#39;s operations or profit outlook. &quot;There is no valuation support for this market cap as it&#39;s all retail excitement meeting a very small float and no institutional sellers,&quot; said Eric Clark, a portfolio manager and chief investment officer at Accuvest Global Advisors. &quot;It&#39;s just a momentum trade and retail excitement plus active growth managers wanting exposure,&quot; Clark said in an email that described SpaceX&#39;s growth potential as a &quot;five-to-10-year game.&quot; Shares of SpaceX have soared more than a third in three sessions since last week&#39;s IPO, which raised a record-breaking $85.7 billion. &quot;There&#39;s a bit of a mania involving AI and anything that could be one of the beneficiaries of the spending on AI,&quot; said Steve Sosnick of Interactive Brokers. Co-founded by Musk in 2002, the rocket startup has expanded into a major satellite operator and has also folded in Musk&#39;s artificial intelligence company xAI, which includes social media platform X. Cursor SpaceX&#39;s acquisition of Cursor marks its latest big AI investment. Founded in 2022, San Francisco-based Cursor specializes in AI for software development, particularly for business uses. An acquisition had looked possible after the two companies had announced a partnership in April that included a clause for Cursor to be potentially bought by SpaceX for $60 billion. Cursor&#39;s emergence has coincided with the growth of &quot;vibe coding,&quot; whereby online users build applications with AI-generated code. At its last funding round in November, Cursor was valued at $29 billion. Tuesday&#39;s deal more than doubles that sum. In a filing with the Securities and Exchange Commission, SpaceX said the all-stock deal was expected to close in the third quarter and that Cursor would become a wholly owned subsidiary. In May, SpaceX announced plans to invest $55 billion to build a &quot;Terafab&quot; semiconductor factory in Texas, producing chips for AI and robotics. Also last month, AI startup Anthropic announced a partnership with SpaceX under which it would pay for use of the compute capacity at SpaceX&#39;s Colossus 1 data center in Tennessee. Bubble? These ventures have cemented investor belief that SpaceX resides at the nexus of key AI developments. Investor consensus also continues to propel Musk, already the world&#39;s wealthiest person, whose role as Tesla CEO also brings exposure to new developments in autonomous driving and robotics. SpaceX&#39;s lofty ambitions for AI are expected to consume capital for at least the next few years. It reported a loss of $4.3 billion last year. The company&#39;s valuation puts it within striking range of Microsoft, currently worth $2.92 trillion, according to Yahoo Finance.&nbsp;<a href="https://pakistantv.com/article/nvidia-launches-windows-laptop-chip-in-consumer-pc-push" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Nvidia</a>&nbsp;is first with nearly a $5.1 trillion valuation. But portfolio manager Clark expects SpaceX&#39;s &quot;bubbliscious&quot; valuation to ebb once additional shares hit the market. IPOs historically see &quot;big&quot; drawdowns during the first year, Clark said. &quot;That should happen when the float expands and people get a chance to match the fundamentals via the first quarterly report with the valuation and market cap.&quot; Clark said SpaceX may one day justify such a valuation but &quot;momentum, euphoria, and hype is a fickle beast, and this market is out of line across many stocks for now.&quot;

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Shares of SpaceX finished up nearly 5% at $201.80, giving it a market value of $2.64 trillion and placing the company a hair below Amazon's $2.65 trillion at the end of Tuesday's session.

After three sessions, SpaceX already among world's most valuable companies

NEW YORK: <a href="https://www.pakistantv.com/article/wall-street-intends-to-stay-open-around-the-clock" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Wall Street</a> stocks were mostly lower early Tuesday on worries about the artificial intelligence (AI) profitability outlook and as oil prices ticked higher. Analysts cited a Wall Street Journal report that pointed to doubts within OpenAI about the company&#39;s revenue outlook and its capacity to build costly new data centers after it missed its own targets. OpenAI is not publicly traded, but&nbsp;<a href="https://www.pakistantv.com/article/nvidia-chief-expects-revenue-of-1-trillion-through-2027" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Nvidia</a>&nbsp;and Oracle were among the AI-related stocks to fall sharply. About 10 minutes into trading, the tech-rich Nasdaq Composite Index was down 0.9% at 24,670.37. The broad-based S&amp;P 500 fell 0.4% to 7,143.08, while the Dow Jones Industrial Average added 0.3% at 49,323.38. &quot;This isn&#39;t the first time we&#39;ve had significant questions about the viability of some of the large language model developers,&quot; said B Riley Wealth Management&#39;s Art Hogan, who also pointed to the drag from higher crude prices. Futures of US benchmark West Texas Intermediate and international contract Brent were both up more than 3%, with no visible progress on reopening the <a href="https://www.pakistantv.com/article/us-israel-war-on-iran-day-60" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Strait of Hormuz</a>.

A folder of AI applications containing DeepSeek, ChatGPT, Gemini, Claude, Meta AI, and Copilot is displayed on a smartphone screen in Creteil, France, on April 24, 2026 (AFP)

Artificial Intelligence

US stocks mostly fell early Tuesday as AI profitability concerns hit tech shares, with Nvidia and Oracle dropping, while higher oil prices weighed on sentiment; Nasdaq and S&P declined, Dow edged up.

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After three sessions, SpaceX already among world's most valuable companies

US stocks mostly fall as AI worries weigh on tech shares

After three sessions, SpaceX already among world's most valuable companies