LUNR Rockets 18% Higher. Is Space the Next AI Goldmine?

A Moonshot in the Making

Intuitive Machines (Nasdaq:LUNR) is a Houston-based space exploration company that is pioneering lunar access and infrastructure. The company specializes in lunar surface delivery, data transmission, and space-based manufacturing, holding multiple NASA contracts under the Commercial Lunar Payload Services (CLPS) program. LUNR stock surged 18.5% yesterday, driven by ambitious partnerships and analyst optimism. 

The space stock made history with its Odysseus lander, achieving the first U.S. lunar landing since Apollo — and the first by a private company — in February 2024, though the mission faced challenges with a tilted landing that limited data collection. Its Athena lander mission in March 2025 also tipped over, but both missions were still considered partial successes because they reached the lunar surface.

With a focus on innovative space solutions, Intuitive Machines is positioning itself as a leader in the lunar economy. But can it also shape the future of artificial intelligence through its space endeavors?

Space-Based Chip Manufacturing

Intuitive Machines recently partnered with Space Forge, a leader in orbital materials engineering, to advance U.S. space-based semiconductor manufacturing. Supported by a Texas Space Commission grant, this collaboration integrates Space Forge’s microgravity-enabled semiconductor production with Intuitive Machines’ Zephyr orbital return vehicle. 

The partnership aims to produce ultra-pure semiconductor substrates in orbit, leveraging microgravity’s ability to create materials with fewer defects and greater structural uniformity. These high-purity chips are critical for applications like quantum computing and clean energy, but are also essential for AI applications.

Intuitive Machines’ Earth Reentry Program, bolstered by this alliance, is designing a reentry vehicle to return these materials to Earth reliably. Phase One of the project, which is set to conclude with a full-scale ground mockup by early 2026, highlights the company’s commitment to scalable space logistics.

This initiative could strengthen U.S. technological leadership by establishing a domestic supply chain for advanced semiconductors.

Wall Street’s Bullish Outlook

What sent LUNR stock to the moon yesterday, though, was Wall Street analysts at Craig-Hallum initiating coverage of Intuitive Machines with a Buy rating and a $17 price target, sparking investor enthusiasm. 

The research note highlights LUNR’s role in the intensifying U.S.-China lunar race and its potential to capitalize on the growing lunar economy. Analysts view Intuitive Machines as a key player in enabling lunar missions and space-based manufacturing, particularly through partnerships like Space Forge. 

The firm emphasized the company’s innovative Earth reentry capabilities, which are essential for returning high-value materials like semiconductors from orbit. Craig-Hallum’s optimism stems, in part, from Intuitive Machines’ NASA contracts, including an Indefinite Delivery, Indefinite Quantity (IDIQ) contract for the Near Space Network with a maximum potential value of $4.82 billion over 10 years.

The Buy rating reflects confidence in LUNR’s technological advancements and its strategic positioning in a rapidly expanding space sector, despite past mission setbacks.

Key Takeaways

Intuitive Machines is a compelling investment due to its pioneering role in lunar exploration and space-based manufacturing. Its partnership with Space Forge positions it to revolutionize semiconductor production, potentially fueling advancements in AI and other high-tech fields by leveraging microgravity’s unique advantages.

 The company’s NASA contracts and Craig-Hallum’s bullish $17 price target — implying 50% upside from where the stock closed the day before — underscore its growth potential in the lunar economy. 

However, LUNR’s high valuation, with a forward P/E ratio of 87x and priced at 11 times sales, carries risks given its early-stage technology and past mission challenges. Despite these risks, its innovative approach to scalable space logistics and strategic alliances make it a stock with significant long-term potential.

Investors seeking exposure to the space sector and AI’s next frontier may find LUNR an attractive, albeit speculative, opportunity as it continues to push the boundaries of space exploration and commercialization.

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