SpaceX AI Infrastructure Plans Drive Major Analyst Upgrades With 70-82% Upside Potential

SpaceX Gains Momentum on AI Infrastructure Strategy

SpaceX received significant analyst upgrades as investment firms recognize the aerospace company's expanding role in AI infrastructure. Bernstein raised its SpaceX stock price target to $268 from $248 while maintaining an Outperform rating, representing approximately 82% upside from Friday's close at $147.492

2

. Deutsche Bank similarly increased its target to $250 from $230, implying nearly 70% potential gains1

1

. Both firms cite the company's terrestrial AI build-outs and compute capacity expansion as primary drivers behind their bullish outlook.

Terrestrial AI Build-Outs Reshape Revenue Projections

Bernstein analyst Douglas Harned emphasized that SpaceX's AI expansion plans represent a material addition to the company's overall revenue trajectory. The firm now projects SpaceX revenues between $500 billion to $1 trillion exiting 2027, with Bernstein's own estimate reaching $424 billion for full year 2028—a significant increase from prior forecasts2

2

. This compares to $32 billion in revenue over the last twelve months, with analysts forecasting 166% revenue growth in fiscal 20262

2

. Bernstein now assumes a total of 13 gigawatts of terrestrial compute capacity by end of 2027, representing 5 gigawatts above its prior estimate, with projections extending to 20 gigawatts by 20282

2

.

Compute Capacity Advantages Drive Competitive Edge

SpaceX aims to bring roughly 10 gigawatts of incremental computing capacity online by the end of next year, according to Deutsche Bank's Edison Yu1

1

. The company's compute could be priced at roughly $35 billion per gigawatt versus the industry standard of $50 billion per gigawatt, providing SpaceX a substantial cost advantage over peers1

1

. Bernstein raised its pricing assumptions based on SpaceX achieving prices above the $30-50 per watt level of recent deals, with estimated capital expenditures of $35 billion per gigawatt2

2

. Yu noted that SpaceX's ability to leverage this compute advantage into better inference and intelligence capabilities remains underappreciated by the market1

1

.

Orbital Data Centers Present Long-Term Valuation Catalyst

While terrestrial AI build-outs drive near-term revenue contributors, Bernstein believes SpaceX's multi-trillion dollar valuation ultimately rests on the success of orbital data centers1

1

. SpaceX plans first orbital data center launches in late 2027, with operations beginning mid-20282

2

. The company's Enterprise & Government Connectivity subsegment appears to be outperforming expectations, adding another dimension to its AI infrastructure strategy2

2

.

Strong Financial Performance Supports Expansion Plans

SpaceX reported impressive third-quarter results that significantly exceeded expectations, achieving a 161% year-over-year increase in revenue to $14.6 billion and a remarkable 306% rise in adjusted EBITDA to $8.8 billion2

2

. The company's management issued optimistic revenue guidance for the first quarter of 2027, estimating between $33 billion and $37 billion, well above consensus estimates2

2

. With a current market capitalization of $2 trillion, SpaceX trades with substantial room for growth according to analyst upgrades2

2

. Of the 43 analysts covering SpaceX, 33 have a buy or strong buy rating on the stock, reflecting widespread confidence in the company's AI infrastructure plans and overall growth trajectory1

1

.