JPMorgan lifts SpaceX target to $500 after strong quarterly beat

what happened

SpaceX stock climbed more than 9% early Wednesday, one day after the Elon Musk-led rocket and satellite firm released its latest quarterly figures. Adjusted profit reached 45 cents a share on revenue of $14.6 billion for the three months to September 30, comfortably beating forecasts compiled by LSEG.

Musk now expects yearly recurring revenue between $500 billion and $1 trillion by the close of 2027, driven by the AI push. LSEG's consensus for that figure stood at $110 billion. The company expects two to three gigawatts of computing capacity by year-end, potentially rising to about 13 gigawatts in 2027, according to JPMorgan.

JPMorgan, which keeps an overweight rating, raised its 12-month target to $500 from $240, about 240% above Tuesday's close. Analyst Doug Anmuth cited AI as the long-term driver and pointed to growing use of the generative AI tool Grok and the recent Cursor acquisition. Of 43 analysts tracked by LSEG, 33 rate the stock a buy or strong buy.

why it matters

Strong revenue and ambitious growth targets are the main reasons for the move, and the bank ties the stock's potential to monetizing computing capacity. Investors will watch whether the company delivers on its AI-linked goals, since the valuation case depends on it. Shares had already slipped nearly 3% over the past month before the rebound.

market impact

SpaceX: strong results and a higher JPMorgan target support sentiment around the stock; AI infrastructure demand may benefit Nvidia chips.

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