Deutsche Bank Raises SpaceX Target to $250 on Cloud Compute Demand

what happened

Deutsche Bank analysts, cited by Market Talk, think renting out computing capacity could bring SpaceX more than $200 billion in yearly recurring sales by late 2027. In their note they raised the stock's price target by $15, to $250.

The analysts say it is still unclear how the company will reach its stated goal of 13 gigawatts of computing power by the end of 2027, and the figure may include a new data center campus. Overall, the shares are benefiting from strong spot prices for compute. The 10-Q filing, they note, implies one large client is paying $1.68 billion a month, versus the $1.25 billion Deutsche Bank had originally modeled.

At the time of the report, SpaceX shares were up 1% at $149.00.

why it matters

For markets, the note shows how compute rental prices feed into valuations of companies tied to AI infrastructure. The key drivers are spot pricing and large payments from a single customer, while the main risk to this view is the uncertainty around the 13 gigawatt target.

market impact

SpaceX: strong compute rental pricing supports investor interest in the stock and its capacity-leasing business

tags

instruments