Space Exploration Technologies, commonly known as SpaceX, experienced a notable surge in its stock price after reporting adjusted earnings of 45 cents per share on $14.6 billion in revenue for the quarter ending September 30.
This performance exceeded analysts' expectations, prompting JPMorgan to upgrade its rating on the stock to overweight and more than double its 12-month price target from $240 to $500.
Analyst Doug Anmuth highlighted that SpaceX's aspirations, particularly in artificial intelligence, position it for significant growth, with the potential for annual recurring revenue to reach between $500 billion and $1 trillion by 2027. This projection far surpasses the $110 billion consensus estimate from Wall Street.
Additionally, SpaceX anticipates increasing its computing power from two to three gigawatts by the end of the year to approximately 13 gigawatts by 2027, which could enhance its monetization opportunities. The growing adoption of its generative AI tool, Grok, and the acquisition of AI code editor Cursor are expected to further bolster the company's value.
Overall, 33 out of 43 analysts currently rate SpaceX as a buy or strong buy, reflecting a strong consensus on its growth potential