On Monday, SpaceX (SPCX.US) continued its advance from the prior trading session, rising more than 5% as of press time, bringing its two-day gain to over 12% and its market capitalization to $2.2 trillion.
On the news front, both CLSA and Morgan Stanley issued reports expressing optimism about SpaceX's development. Morgan Stanley analysts noted that SpaceX integrates satellite, aerospace, and AI businesses into one entity, making it one of the lowest-opportunity-cost vehicles for gaining exposure to the space and intelligent economy while pursuing high returns. They expect developments over the coming months to help investors more fully appreciate SpaceX's role in addressing key bottlenecks in power and chip manufacturing, potentially opening room for earnings growth and valuation expansion.
Analyst Adam Jonas wrote in a client research note: "We expect multiple business developments over the next several months to help investors better understand SPCX's value in solving critical bottlenecks in power and chip manufacturing, which could unlock earnings growth potential and drive valuation multiple expansion." The report stated that ahead of the Starship Flight 15 test, investors have a rare window to position themselves. The analyst believes that AI product launches, progress on the Starship program, and additional high-value cloud service contracts could push the stock toward its $300 price target.
CLSA published a research report indicating that Nvidia's demand coverage is broader than the market realizes, with SpaceX's installed base surging and a target of reaching 10 gigawatts by the end of 2027. Sovereign AI already accounts for approximately 20% of its revenue, and the firm expects SpaceX to contribute more than 20% of Nvidia's revenue by calendar year 2028, at which point it is expected to replace Microsoft as the largest customer. This challenges the market narrative that the company relies on the four major hyperscale cloud service providers and lends credibility to sustained growth.
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