Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

AI Efforts Could Help This SpaceX ETF Blast Off

BY | ETF Database
7:18 am ET 09/30/26 | 13 VIEWS
Elon Musk’s Space Exploration Technologies (SPCX), shares of which are up 3.3% over the past month, is known to many investors as a rockets and satellites company. But there’s much more to the story. And that includes a vibrant AI thesis.SpaceX’s various AI efforts could present aggressive traders with opportunities to capitalize with the Direxion Daily SpaceX Bull 2X ETF (LOFF). The fund debuted in June soon after the SpaceX initial public offering (IPO). It attempts to deliver 200% of the daily returns of this new stock. Among the AI-related items for prospective LOFF traders to stay abreast of is the newly minted Grok Bot. “While still early, we find Grok Bot to be intriguing and have noticed a lot of positive user feedback since its release last month with weekly users reportedly at 418k as of Sep 14,” noted Deutsche Bank analyst Edison Yu. “We think Grok Bot represents a very easy way to deploy agents across a range of functions spanning e-mail triage to coding tasks. That being said, we don’t see Grok Bot aspiring to a be a “killer” consumer app but rather one element of an evolving Grok+Cursor ecosystem that is trying to be more friendly to enterprise customers. Looking forward, we believe this is a key driver for the stock to potentially re-rate higher: can these tools ultimately resonate with enterprises and drive meaningful growth?”AI Could Spell Liftoff for LOFFPerhaps even more compelling to LOFF traders and SpaceX investors than Grok Bot is the company’s effort to boost its AI compute capacity, which is powered by Nvidia chips. Compute demand is through the roof. That indicates SpaceX may be at the right place time in addressing that need. “Supporting this expansion, SpaceX is putting up the largest grid-connected battery pack bank in the US worth 3.3 GWh,” added Yu. Of note to traders considering the leveraged LOFF, one of the first single-stock ETFs addressing SpaceX, are data points indicating the company is already making AI compute strides. “Specifically on the neocloud deals, we estimate the five signed customers are worth $54.5bn on an annualized revenue run-rate basis. Management has not disclosed the exact compute allocation to these contracts but we estimate 1.2-1.4 GW, implying $40-45bn per GW pricing, toward the higher end of $30-50bn range,” concluded the Deutsche Bank analyst.For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

More Commentary

The Time Is Right to Consider These Bitcoin ETFs
BY | ETF Database
9:12 am ET 09/30/26 | 17 VIEWS
Some Dividend Stars Call This ETF Home
BY | ETF Database
9:42 am ET 09/30/26 | 30 VIEWS
Why Equity Income ETFs Can Star in Retiree Portfolios
BY | ETF Database
11:06 am ET 09/30/26 | 16 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.