SpaceX (SPCX) shares advanced about 2% on Tuesday after Bernstein SocGen Group lifted its price target on the company, pointing to expanding artificial intelligence infrastructure plans and the potential for orbital data centers to drive future growth. The new target of $268, up from $248, implies roughly 82% upside from current levels, and the firm maintained an Outperform rating.
Bernstein's revised outlook primarily reflects plans to expand terrestrial computing capacity, alongside growth in enterprise and government connectivity. The research firm noted that its valuation case does not assume a merger with Tesla or that SpaceX achieves its full revenue ambitions.
Bernstein raises revenue and computing forecasts
Bernstein now projects $424 billion in full-year 2028 revenue for SpaceX, a figure that remains below the company's own ambition to reach an annualized revenue pace of $500 billion to $1 trillion by the end of 2027. The firm said investors do not need SpaceX to hit its entire revenue target for the investment case to remain attractive.
The analyst also increased its forecast for terrestrial computing capacity to 13 gigawatts by the end of 2027, five gigawatts above its prior estimate. Capacity is expected to reach 20 gigawatts in 2028, compared with 1.7 gigawatts reported at the end of September. Elon Musk has said he expects SpaceX to add 10 gigawatts of computing capacity in 2027, in addition to the 2.5 to 3 gigawatts expected online by the end of 2026. Bernstein noted that pricing for computing capacity could provide further upside, though it kept its assumptions below the company's expectations.
Orbital data centers and Starship reusability in focus
SpaceX is planning its first orbital data-center launches for late 2027, with operations expected to begin in mid-2028. Bernstein said the success of orbital computing infrastructure will depend partly on Starship's ability to become reusable. The company plans to attempt to catch both the booster and spacecraft during Flight 15, expected within weeks. The performance of Starship's heat shield during Flight 14 could help pave the way for the first reuse of the spacecraft on Flight 16, according to Bernstein.
Meanwhile, SpaceX continues to expand its Starlink network. The company launched 27 Starlink satellites from California on Tuesday aboard a Falcon 9 rocket as it gradually shifts focus toward the larger Starship program.
BofA adds SpaceX to top investment ideas list
SpaceX also drew attention from Bank of America, which added the company to its US 1 List of preferred investment ideas. Fox Corp. was also added, while RenaissanceRe was removed. BofA highlighted SpaceX's reported plans to secure access to more than 80,000 US cellular sites as it considers expanding beyond satellite internet into nationwide mobile services. The brokerage estimates that radio access network equipment could cost around $75,000 per site, implying total spending of approximately $6 billion. Nokia and Ericsson could benefit from the potential equipment demand, according to BofA.
Bernstein's valuation model does not include a potential Tesla merger or a reported telecom tower deal.
This article is for informational purposes only and does not constitute financial advice.
