SpaceX's current value stems from building essential AI infrastructure on Earth, with the company generating significant revenue from terrestrial compute contracts with major clients. According to The Economic Times, revenue from SpaceX's latest compute contracts is set to far exceed sales from other segments this year, with deals with Anthropic, Alphabet's Google and Reflection AI for its Colossus compute facilities expected to generate more than $28 billion in annual revenue. This figure far exceeds SpaceX's 2025 AI revenue of about $3.2 billion and surpasses revenue from its launch and Starlink connectivity businesses individually. The company invested nearly $18 billion in AI infrastructure and development in 2025, including about $12.7 billion in AI-related capital expenditure and $5.1 billion in AI research and development, dwarfing spending on its space and connectivity businesses.
Raymond James analyst Brian Gesuale initiated coverage on SpaceX with a strong buy rating and an $800 price target, representing the highest among Wall Street analysts. According to reports from CNBC TV18, this target is roughly 430% above where the stock was trading during Tuesday's selloff. Should the shares reach this level, SpaceX's market valuation would balloon to approximately $10.5 trillion, compared to its current market valuation of less than $2 trillion. Gesuale described the company as "one of the defining industrial infrastructure companies of the 21st century," comparing its potential impact to railroads, electric grids, and the Internet in previous economic eras. The brokerage now projects SpaceX's revenue to soar to $5.2 trillion by 2035, from $19 billion that it reported last year.
The analyst's growth projections are primarily based on SpaceX's artificial intelligence business expansion. As reported by CNBC TV18, AI currently accounts for $16 billion of SpaceX's revenue, up from $3 billion in 2024 when "substantially all AI revenue came from X, primarily through advertising, subscriptions, and data licensing." The Economic Times reports that Colossus and Colossus II together provide roughly one gigawatt of AI compute capacity, placing SpaceX among the world's largest AI compute operators. Raymond James estimates this figure will rise to approximately $650 billion by 2031, making AI the company's largest business by revenue beginning in 2027. By 2035, AI will represent nearly 94% of SpaceX's revenue, or $4.9 trillion, according to Gesuale's projections.
Fresh optimism from Raymond James builds on a series of positive ratings issued by other investment banks in recent days. Morgan Stanley began coverage with an Overweight rating, assigning a base-case price target of $300 and a bull-case target of $600. Goldman Sachs also initiated coverage with a Buy rating and a $205 target, while Citigroup started coverage with a Buy recommendation and a 12-month target of $200. UBS and Wells Fargo also launched coverage with positive recommendations, adding to institutional support for the newly listed company. According to crypto.news, SpaceX shares gained fresh momentum after Raymond James initiated coverage, with the stock trading around $153 on Thursday after rising about 3.2%, following a difficult stretch in which the stock had fallen more than 25% from recent highs despite joining the Nasdaq-100. However, the stock has corrected roughly 32% from its June all-time high of $225, reflecting strong belief but also caution in the market.
While terrestrial AI drives near-term growth, orbital AI remains a longer-term opportunity dependent on technological advancements. As reported by The Economic Times, J.P. Morgan expects SpaceX to expand terrestrial AI compute capacity to about 9 gigawatts by 2029 - roughly equivalent to four times the power generated by the Hoover Dam. The brokerage expects SpaceX to pivot to orbital compute for incremental capacity additions beyond 2029, while continuing to operate terrestrial compute clusters. BofA analysts noted that "the long-term viability of orbital data centers is unproven and highly dependent on key technological milestones that have yet to be fully realized." Most analysts expect terrestrial compute to drive SpaceX's growth and earnings for the rest of the decade, with orbital AI dependent on Starship achieving rapid reusability, lower launch costs and advances in satellite engineering.
