Key Stats for Howmet Aerospace Stock
- Price change for Howmet Aerospace stock in the last 1 month: -14%
- $HWM Stock Price as of Aug. 31: $317
- 52-Week High: $345
- $HWM Stock Price Target: $337
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What Happened?
Howmet Aerospace (HWM) stock took a sharp hit after Elon Musk said SpaceX and Tesla are ramping up 100 gigawatts of solar production a year. But the bigger blow came from a follow-up post.
Musk said SpaceX plans to cast turbine blades and vanes in-house, cutting the wait time for new natural gas turbines by up to 18 months. He called it “a profound game-changer.”
Howmet wasn’t alone in feeling the pressure. GE Vernova dropped 3%, and Siemens Energy fell 4.4% in Frankfurt trading.
All three companies supply parts for gas turbines, which are in high demand right now to power data centers.
Not everyone agrees this is bad news for the industry.
Bloomberg Intelligence analyst Omid Vaziri pointed out that Musk’s announcement actually confirms just how scarce turbine capacity has become, rather than threatening it.
He noted that Siemens Energy is already expanding its own casting capacity to work through the bottleneck.
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What the Market Is Telling Us About Howmet Aerospace Stock
The selloff shows investors are worried about new competition entering a business that Howmet has long dominated. On its most recent earnings call, Howmet management said the company holds more than 50% of the global market for turbine blades used in industrial gas turbines. That’s a big lead to give up.
Management also spent real money defending that position. Howmet has been building new plants in Japan and expanding in Europe and Virginia to keep up with turbine demand.
The company said gas turbine revenue jumped 38% in Q2, and it just wrapped up talks with all seven of its major gas turbine customers on future orders.
Capital spending is set to top $500 million this year, and executives expect it to rise again in 2027.
Interestingly, Howmet’s CEO John Plant was already asked about space-based competition on that same earnings call, though in a different context.
He walked through the technical hurdles of running data centers in space, like the sheer number of rocket launches needed and the challenge of maintaining solar arrays in orbit.
He said any large-scale shift to space wouldn’t happen until the 2040s or 2050s.
That timeline doesn’t erase Monday’s concern, since SpaceX’s turbine blade plan is a near-term move, not a space-based one.
But it does suggest Howmet’s leadership has been thinking about competitive threats to its business well before Musk’s post.
Whether Howmet Aerospace stock recovers will likely depend on how investors weigh the company’s existing scale and customer relationships against a new, well-funded competitor entering the turbine parts business.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
