Deutsche Bank Raises SpaceX Target to $250 on AI Compute Potential

Deutsche Bank raised its SpaceX price target to $250 from $230 Monday, while analyst Edison Yu outlined how planned computing capacity may offer the company a cost advantage.

Yu estimated SpaceX aims to bring roughly 10 gigawatts of additional computing capacity online by the end of 2027. He said the compute could be priced at about $35 billion per gigawatt, compared with an industry standard of $50 billion. That difference could give SpaceX a cost advantage over peers.

Yu also said the value SpaceX’s processing power could add to its shares may be underappreciated. He said estimates for the next few quarters may be too low and that SpaceX’s ability to turn computing capacity into better inference and intelligence remains undervalued.

Bernstein analyst Douglas Harned said terrestrial AI plans could materially add to SpaceX’s revenue path. He said the case for a multitrillion-dollar valuation depends on the success of orbital data centers. Bernstein’s target increase to $268 from $248 was also tied to the company’s AI computing plans.