SpaceX Stock Outlook Flips to Bullish as AI Business Drives Strong Earnings, Analyst Sees 73% Upside

PhilippCapital has officially upgraded its stance on SpaceX, shifting from a bearish outlook to a highly optimistic one, driven by the exceptional performance of the company’s artificial intelligence division. The financial firm upgraded shares of the space and AI giant to a “buy” from “sell,” dramatically raising its price target to $250 from its previous $75. This new target suggests a potential upside of nearly 73% from Thursday’s closing price.

SpaceX’s recent third-quarter financial report underscored this positive shift, revealing adjusted earnings of 45 cents per share and revenue of $14.58 billion, both figures surpassing analyst expectations. The company achieved its first quarterly profit as a publicly traded entity, a milestone analyst Glenn Thum attributed to three primary catalysts in a Friday research note.

First, the company’s “Super Intelligence” (SI) unit saw new cloud services agreements go online at elevated rental rates, with the AI platform Cursor contributing $608 million since mid-August. Second, connectivity solutions, including aviation installations and Starshield contracts, boosted enterprise and government revenue by 91% year-over-year. Third, operating leverage allowed higher-margin cloud services to turn the SI division profitable.

Despite these strong results, Thum noted that full-year 2027 revenue projections might fall short of SpaceX’s internal expectations, citing potential delays in scaling its compute business due to power and cooling constraints. Nonetheless, the analyst increased his forecasts, emphasizing strong confidence in the compute demand segment. “We like SPCX for compute demand running ahead of supply,” Thum wrote, highlighting that contracts are renewing at higher prices per watt, new capacity pays back in under a year, and first-quarter 2027 revenue guidance is more than double that of the third quarter of 2026. Following the announcement, SpaceX shares rose by 2% in premarket trading on Friday.

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