JPMorgan Raises SpaceX Price Target and Sees Triple Upside

SpaceX shares surged more than 9% on Wednesday after the company reported quarterly earnings that exceeded analysts’ estimates. JPMorgan said the rally could continue, projecting that the stock could more than triple in value over the next year.

The investment bank maintains an overweight rating on SpaceX and raised its 12-month price target to $500 from $240, nearly 240% above Tuesday’s closing price.

“SpaceX’s ambitions are bigger than any company’s we’ve seen,” analyst Doug Anmuth wrote in a note to clients. “Importantly, AI is expected to be the long-term driver, with significant upside potential as the company quite literally builds out the next frontier.”

SpaceX reported adjusted earnings of 45 cents per share on revenue of $14.6 billion for the three months ended September 30, according to LSEG data. The results were well above Wall Street’s consensus estimates.

The company also raised several financial targets. Musk said SpaceX could generate between $500 billion and $1 trillion in annual recurring revenue by the end of 2027 as it expands its artificial intelligence operations. That range is far above the $110 billion consensus estimate compiled by LSEG.

SpaceX expects to finish the current year with two to three gigawatts of computing capacity and could expand that figure to roughly 13 gigawatts by 2027, according to JPMorgan. The additional capacity is expected to create opportunities for higher revenue and support the company’s valuation.

“Importantly, we believe the 10 gigawatts of incremental compute in 2027 is almost all Nvidia’s Vera Rubin, which should command significantly higher monetization,” Anmuth wrote.

JPMorgan also expects broader adoption of SpaceX’s Grok generative AI tool and the company’s planned acquisition of the AI code editor Cursor to contribute to shareholder value. The bank’s view aligns with Wall Street sentiment, as 33 of the 43 analysts covering SpaceX rate the stock a buy or strong buy, according to LSEG.

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