SpaceX Shares Drop 13% Over Five Days Amid AI Stock Sell-Off

Shares of SpaceX (NASDAQ: SPCX) have fallen by 13% over the past five trading days. The decline comes amid a broad sell-off in AI sector stocks: Nvidia and Micron Technology have lost 7% and 15% respectively.

According to JPMorgan strategist Nikolaos Panigirtzoglou, AI stocks may find it harder to rebound after the October sell-off compared to July 2026, as market conditions are different now. He explains this by the weakening buying activity of traders who typically enter the market during dips. Additionally, he notes that there are very few short positions open on AI stocks, so even if there is a rebound, traders have almost no opportunity to close shorts that would support growth. Among the reasons for the weak rebound, the strategist also cites a reduction in corporate stock buybacks and an increase in leverage in ETFs, which could amplify volatility.

Barclays forecasts that SpaceX may announce a possible merger with Tesla by the end of 2026, likely before Tesla's annual shareholder meeting. According to the bank's assessment, SpaceX is most likely to acquire Tesla in an all-stock deal. Elon Musk has previously suggested that by 2030, SpaceX's valuation could reach $100 trillion. Morgan Stanley also predicts growth in SpaceX shares due to factors such as AI infrastructure and robotics.

At the time of writing, SpaceX shares were down 5.71% following the release of the U.S. Producer Price Index (PPI) report, which triggered a sell-off in risk assets. The stock has fallen below an important support zone. If it closes below this level, the next zone could be the $130-135 range. The MACD indicator is turning downward, although it remains above the signal line.

If the stock bounces off the current support zone of $145-148, it may show short-term growth, as it did in mid and late September. A trend reversal, according to the author's technical scenario, could be confirmed by a move above the 50-day SMA at $145.