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SpaceX stock has entered a sharp correction just days after delivering the largest IPO in history. Shares of SpaceX (NASDAQ: SPCX) were trading around $154 on Monday, down more than 30% from their post-IPO high above $225. The decline comes despite a series of major announcements that would normally be expected to support investor sentiment, including a multibillion-dollar artificial intelligence infrastructure deal and growing optimism around the company's long-term growth prospects. The pullback has left investors asking a critical question: is the recent SpaceX stock price drop creating a buying opportunity, or is the market beginning to reassess the company's massive valuation? Why Is SpaceX Stock Falling? SpaceX shares have been under pressure as investors lock in profits following one of the most explosive IPO debuts ever seen. After pricing its initial public offering at $135 per share, the stock surged nearly 50% within days, briefly pushing the company's market capitalization above $2.5 trillion. At one point, SpaceX was competing with Amazon and Microsoft among the world's most valuable publicly traded companies. However, analysts had warned that the stock's limited public float and lofty valuation could create significant volatility. That appears to be playing out. Reuters reported that SpaceX shares fell more than 10% in a single session last week as retail buying activity cooled and investors began reassessing whether the company's valuation can be justified by its current earnings profile. Even after the recent decline, the stock remains more than 15% above its IPO price. Reflection AI Deal Highlights SpaceX's Growing AI Ambitions While the stock has weakened, SpaceX continues to secure major commercial contracts. Reflection AI announced on Monday that it had signed a computing agreement with SpaceX that will provide the startup with access to Nvidia GB300 chips housed inside the company's Colossus 2 data center. According to CNBC, Reflection AI will pay SpaceX approximately $150 million per month beginning July 2026 through 2029. If the agreement remains in place for the full term, total payments could exceed $6.3 billion. The deal adds to a growing list of AI-related partnerships for SpaceX, which has already secured agreements with Google and Anthropic as it aggressively expands beyond its traditional aerospace and satellite businesses. For investors, the contract reinforces a growing belief that SpaceX is evolving into more than a rocket company. SpaceX's AI Business Could Become a Major Growth Driver Much of the excitement surrounding SpaceX's IPO stems from its ambitions in artificial intelligence infrastructure. The company has repeatedly highlighted AI as one of its largest long-term opportunities, alongside Starlink and its launch business. Management has argued that the world faces an enormous shortage of computing capacity as demand for advanced AI models continues to surge. SpaceX is positioning itself to become a major supplier of that infrastructure. The Reflection AI agreement provides further evidence that demand remains strong. More importantly, it demonstrates that customers are willing to commit billions of dollars to secure access to advanced computing resources. The Next Big Catalyst Could Arrive Within Weeks Investors are now looking ahead to what could become the most important event since the IPO. SpaceX is expected to release its first quarterly earnings report as a public company later this summer. The report will provide Wall Street with its first detailed look at how the business is performing following its historic market debut. Analysts are expected to focus heavily on three areas. The first is Starlink, which remains the company's largest revenue and profit generator. The second is Starship, the next-generation rocket program that underpins many of SpaceX's long-term ambitions. The third is AI infrastructure, where investors are eager to understand how quickly new contracts can translate into revenue growth. Strong results could help restore confidence in the stock. Weak numbers could trigger another round of selling. SpaceX's AI Business Could Become a Major Growth Driver Much of the excitement surrounding SpaceX's IPO stems from its ambitions in artificial intelligence infrastructure. The company has repeatedly highlighted AI as one of its largest long-term opportunities, alongside Starlink and its launch business. Management has argued that the world faces an enormous shortage of computing capacity as demand for advanced AI models continues to surge. SpaceX is positioning itself to become a major supplier of that infrastructure. The Reflection AI agreement provides further evidence that demand remains strong. More importantly, it demonstrates that customers are willing to commit billions of dollars to secure access to advanced computing resources. Weak numbers could trigger another round of selling. Why is SpaceX stock falling today? SpaceX shares have fallen as investors take profits following the stock's massive post-IPO rally and reassess whether its valuation above $2 trillion is justified. What is the Reflection AI deal with SpaceX? Reflection AI signed an agreement to access Nvidia GB300 chips at SpaceX's Colossus 2 data center, a deal reportedly worth up to $6.3 billion through 2029. When is SpaceX's first earnings report? SpaceX is expected to report its first earnings as a public company in late July or early August, making it one of the most anticipated events for investors.