The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
SpaceX (SPCX) just gave investors a new reason to believe in its growth story. Speaking at a Goldman Sachs conference, CFO Bret Johnsen said he has gained even more conviction that the company can hit a $100 billion annual revenue run rate. The driver is a new deal to supply AI computing power to an unnamed customer. It's worth $1.11 billion a month starting in December, or roughly $13 billion a year. That deal also supports a bigger shift. After absorbing xAI, Musk's AI startup, in February, SpaceX now runs AI computing as a third business alongside Starlink and rockets. Its AI compute deals with Google (GOOGL) and Anthropic already bring in over $2 billion a month. On top of that, a $6.7 billion cloud-services agreement starts ramping in October. Johnsen even said this AI infrastructure can pay itself in under a year, thanks to contracts already locked in.
There's also a near-term boost coming. On September 21, SpaceX's weighting in the Nasdaq-100 ($IUXX) is set to rise, likely from 1.25% to around 2.25%. The reason is that more than a billion shares have come off lock-up, lifting its free float to nearly 30%. J.P. Morgan estimates this forces index funds to buy about $15.5 billion of SpaceX stock. The stock has been flat lately, so this buying could give it a short-term lift.
Mark Cuban Says He Was Dizzy for Months, So He Built a VR Fix That Does at Home 'Much Of What A 180k Machine' Does
Mark Cuban Says He Was Dizzy for Months, So He Built a VR Fix That Does at Home 'Much Of What A 180k Machine' Does
Bank of America Just Declared a 'Generational Entry Point' in U.S. Bonds. Why Investors Should Be Backing Up the Truck on Treasuries Here.
Bank of America Just Declared a 'Generational Entry Point' in U.S. Bonds. Why Investors Should Be Backing Up the Truck on Treasuries Here.
Nvidia, OpenAI, and Oracle's $745B Financing Circle Just Hit Its First Stress Test: A Fed Rate Hike
Nvidia, OpenAI, and Oracle's $745B Financing Circle Just Hit Its First Stress Test: A Fed Rate Hike
Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.
Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.
SpaceX still needs to grow substantially before it can achieve the $100 billion milestone. It did $7.8 billion in revenue last quarter, or about $2.6 billion a month. To hit the target, that monthly figure needs to more than triple to around $8.3 billion. The index may lift the stock now, but the target still rests on these deals.
Space Exploration Technologies — commonly called SpaceX — designs, manufactures, launches, and operates products and services built on technologies, including rockets and spacecraft. Founded in 2002, the company is headquartered in Starbase, Texas, and operates through three main segments: space, connectivity, and AI.
Since its IPO, SPCX's stock has fallen 6%, underperforming the iShares US Aerospace & Defense's (ITA) 8% gain during the same period. The performance gap highlights the stock's volatility compared with the relatively stable performance. After trading at $152 on July 9, the stock declined approximately 28.95% to $108 by July 31. Since then, the stock has recovered most of its losses and is currently trading at $150.
SpaceX Is Racing Ahead on Capacity. Can Revenue Keep Pace?
SpaceX reported its second-quarter fiscal 2026 earnings on August 4. It reported a sharp rise in second-quarter revenue, which came in at $7.8 billion, up 92% year over year. The connectivity segment remained the biggest business, with revenue of $4.3 billion, up 66 YoY, while AI segment revenue was $2.6 billion. CEO Elon Musk said the company completed 2 successful flights of Starship V3 and that flight 14 will be the first flight to carry the company's Version 3 Starlink satellites. The company, which added more than 1.7 million Starlink subscribers globally in the quarter, has approximately 10,200 Starlink broadband and mobile satellites in low Earth orbit, accounting for roughly 65% of all active working satellites currently orbiting Earth. Total company capital expenditures in the second quarter were approximately $18.4 billion, of which roughly $15.8 billion supported AI compute infrastructure.
Looking forward, management said it expects to reach a $100 billion annualized revenue run rate by the end of 2026, based on expected December revenue. The company expects to end the year with over 2 gigawatts of compute. Morgan Stanley analyst Adam Jonas asked about SpaceX's plans to expand its AI computing capacity. Elon Musk said the company aims to have 20 gigawatts of power and cooling capacity online by the end of next year, significantly higher than earlier expectations. He added that the company expects to receive a large share of Nvidia's (NVDA) supply next year, which would support its AI infrastructure expansion.
On September 15, Jonas assigned a Buy rating to SPCX with a price target of $300. The analyst's price target reflects 100% upside from the current levels. Similarly, Bernstein analyst Douglas Harned reiterated a Buy rating and assigned a price target of $248. In contrast, MoffettNathanson kept a Hold rating on SPCX while raising the firm's price target from $131 to $142.
Based on 36 Wall Street analysts covering the stock, SPCX holds a consensus Moderate Buy rating. The mean price target of $219 reflects an additional 51% upside from the current levels. The company's high price target of $800 is quite impressive, which further implies a 459% upside from the current share price. This shows that Wall Street remains optimistic about SPCX's growth prospects.
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
SpaceX CFO Touts New $13 Billion AI Deal, Upcoming Starship Milestones Investor's Business Daily • 7d ago SPCX
SpaceX CFO Touts New $13 Billion AI Deal, Upcoming Starship Milestones
SpaceX signs another AI computing deal, with $100 billion in ARR 'on track,' CFO says Yahoo Finance • 7d ago SPCX
SpaceX signs another AI computing deal, with $100 billion in ARR 'on track,' CFO says
SpaceX Said $100 Billion Is Within Reach, Its Cash Flow Tells Another Story Insider Monkey • 1d ago SPCX
SpaceX Said $100 Billion Is Within Reach, Its Cash Flow Tells Another Story
SpaceX just won something that gives its investors hope TheStreet • 3d ago SPCX
SpaceX just won something that gives its investors hope
SpaceX Stock Is Positioned for Robust ARR Growth and EBITDA Margin Expansion Barchart • 4d ago SPCX
SpaceX Stock Is Positioned for Robust ARR Growth and EBITDA Margin Expansion
SpaceX CFO: New Compute Deal Puts Company Closer to $100B ARR Goal Motley Fool • 2d ago SPCX NVDA
SpaceX CFO: New Compute Deal Puts Company Closer to $100B ARR Goal
SpaceX Bags AI Hosting Deal Worth More Than $1 Billion a Month. What This Means for SPCX Stock. Barchart • 4d ago SPCX GOOG
SpaceX Bags AI Hosting Deal Worth More Than $1 Billion a Month. What This Means for SPCX Stock.
SpaceX Stays Flat After Unveiling a $13 Billion AI Contract GuruFocus.com • 7d ago SPCX
SpaceX Stays Flat After Unveiling a $13 Billion AI Contract
Elon Musk Is Asking Investors to Trust Him Again as SpaceX Focuses on More Than Just Space Barchart • 1mo ago SPAX.PVT
Elon Musk Is Asking Investors to Trust Him Again as SpaceX Focuses on More Than Just Space
SpaceX Stock Chases 3-Week Winning Streak: CFO Says ‘Very Strong’ Nvidia Alliance Could Fuel 10-GW AI Push Stocktwits • 8d ago SPCX NVDA
SpaceX Stock Chases 3-Week Winning Streak: CFO Says ‘Very Strong’ Nvidia Alliance Could Fuel 10-GW AI Push
