Intuitive Machines (LUNR) Jumps 11%, Investors Upbeat on Space Stocks

We recently published 10 Big Names With Effortless Double-Digit Gains. Intuitive Machines Inc. (NASDAQ:LUNR) was one of the best performers on Monday.

Intuitive Machines rallied for a second day on Monday, jumping 11.02 percent to close at $19.45 apiece despite the lack of fresh developments to boost buying appetite.

However, Intuitive Machines Inc. (NASDAQ:LUNR) mirrored a recent rally in fellow space stocks over the past few weeks after billionaire Elon Musk posted confidence for the industry, saying that it could be the most “cost-effective” way to produce AI compute.

As a company that could support initiatives through the delivery of equipment into space, Musk’s comments spelled good news for Intuitive Machines Inc. (NASDAQ:LUNR).

In other recent developments, investment firm KeyBanc raised its price target for the space player to $26 from $20 previously, while maintaining a “buy” recommendation amid its optimism for the overall space and defense sectors.

Intuitive Machines Inc. (NASDAQ:LUNR) also received a higher price target of $22.50 from Canaccord, versus $15.50 previously, while reaffirming a “buy” rating on the shares.

Meanwhile, Stifel upgraded the stock to $20 from $18 previously, but downgraded the company to “hold” from “buy.”

Morgan Stanley is also bullish about the space sector, saying that the “banner year” for the sector in 2025 is expected to spill over this year.

While we acknowledge the potential of LUNR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.