AI and Aerospace “Dual Engines” Launched! Goldman Sachs Targets SpaceX (SPCX.US) at $230
Goldman Sachs reiterated its “Buy” rating on SpaceX in its research report, raising the 12-month target price from $220 to $230, representing an upside potential of nearly 45% from last Friday’s closing price.
According to Golden Ten Data APP, ahead of SpaceX (SPCX.US) announcing its Q3 2026 earnings on November 5 (US Eastern Time), Goldman Sachs has recently released a research report updating and raising its forecasts for the company's artificial intelligence (AI) business—including computing power capacity, revenue, and profit margin—based on recent trading activity, latest public statements, and key enterprise use cases and model development progress. As SpaceX continues to demonstrate high execution capability, Goldman Sachs will further review potential computing power monetization scenarios for fiscal years 2026 to 2028. It believes that, in the absence of any adjustment in the broader AI operating environment, forecasts for the company's AI business over the next 6-18 months remain relatively conservative (compared to market consensus). Additionally, regarding SpaceX's aerospace business, Goldman Sachs discussed recent relevant news and considered how the continued increase in launch frequency and reusability over the next few years might impact the company’s long-term growth opportunities.
Goldman Sachs built this earnings preview around three key investor debate points/questions:
1. How should investors view the construction of ground computing power infrastructure over the next approximately 12-18 months?
Based on management's comments, Goldman Sachs believes that SpaceX's visibility on expanding ground computing power capacity to 2.4GW by the end of 2026 is quite high. Moving into 2027, key variables expected to drive ground computing power further into the 5-10GW range include: (a) power and cooling; (b) data center infrastructure; and (c) server capacity.
Ground computing power capacity is expected to reach 7.0GW by the end of 2027 and 10.6GW by the end of 2028. All three of these variables remain dynamic for now, and Goldman Sachs will monitor progress in the coming months to assess the development of ground computing power capacity.
2. What level of monetization can SpaceX achieve from ground computing power (how much revenue per GW)?
Given a series of recent company developments (including signing new colocation agreements and improvements to foundational models), as well as wider industry trends (supply and demand imbalance and continued growth in token demand), Goldman Sachs remains optimistic about SpaceX's ability to monetize computing infrastructure at high rates in the medium term. The bank developed multiple scenario analyses regarding monetization and colocation agreements, concluding that over the next few years, the company’s AI business revenue could substantially exceed current market consensus expectations.
3. How should recent Starship launches be understood, and what is their impact on connectivity and AI business?
Goldman Sachs emphasized that ongoing Starship launches and deployments drive subsequent iterations and adjustments for the spacecraft, allowing SpaceX to continue making progress and overcoming technical barriers. As these adjustments move forward, the company is expected to get increasingly closer to its goals for reusability and launch frequency.
Additionally, Goldman Sachs believes Starship will generate a series of significant business opportunities—including the current broadband/mobile communications business, as well as future orbital computing power business—which will both increase capacity (for example, downlink capacity) and improve unit economics.
Goldman Sachs reiterated its “Buy” rating on SpaceX in the research report, raising the 12-month target price from $220 to $230, representing nearly 45% upside from last Friday’s closing price. The bank continues to view SpaceX as well-positioned for expansion in the following areas: aerospace business (launch and reusability), connectivity business (broadband and mobile satellite constellations), and AI business (computing power, X, etc.). Each of these markets has the potential to become a multi-trillion-dollar opportunity over a time span of more than five years.
Meanwhile, Goldman Sachs remains optimistic about the company’s post-merger vertical integration strategy and the resulting structural cost and competitive advantages. The bank expects these advantages to further accumulate and strengthen growth momentum in the coming years.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
BUZZ-BridgeBio shares rise as FDA initiates priority review for dwarfism drug
On October 6th, shares of pharmaceutical company BridgeBio Pharma (BBIO.O) rose 2.5% in pre-market trading to $67.80. The company announced that the U.S. Food and Drug Administration (FDA) has granted priority review to its application seeking approval for the investigational oral drug infigratinib for the treatment of children with achondroplasia, the most common type of dwarfism. The FDA has set a target decision date of February 4, 2027. The application is based on a late-stage clinical trial that met both primary and key secondary endpoints; children treated with infigratinib experienced an adjusted annual growth velocity 1.74 centimeters greater than those given placebo. The drug also improved arm span and body proportions in children under eight years old. No serious adverse events or discontinuations related to the drug were reported. BridgeBio plans to apply for European approval in the fourth quarter of 2026. As of the close of the previous trading day, BBIO shares are down 13.5% year-to-date. (For the convenience of non-English speakers, Reuters has automated this report into several other languages. Because automated translation may contain errors or lack required context, Reuters does not guarantee the accuracy of automated translation, which is provided for readers’ convenience only. Reuters accepts no liability for any damages or losses arising from the use of automated translation.)
Google (GOOGL.US) spends $4.3 billions on electricity, securing 3,590 megawatts of long-term energy from Constellation Energy (CEG.US).
Google has signed a 3,590 MW power purchase agreement with Constellation Energy, with a quarter of the electricity coming from nuclear power, involving an investment of $4.3 billion.
BUZZ - Torm shares decline as Oaktree exits in a $253.5 million secondary offering
Updated Pricing Details: On October 6th, before the market opened on Tuesday, shares of the tanker operator Torm (TRMD.O), listed in the US, dropped 3.2% to $39.72 after the company announced the pricing of its secondary offering. According to the company (link), funds managed by Oaktree Capital Management sold approximately 6.3 million shares, raising a total of about $253.5 million. The secondary offering was priced at $40.05 per share, a 2.4% discount to the stock's previous closing price. According to the prospectus, Oaktree Capital completely exited its remaining approximately 6.2% stake following the sale (link). JPMorgan served as the sole underwriter for this issuance. Last month, Oaktree Capital (link) sold shares in another secondary offering of 9 million shares at $32.25 per share. Driven by record freight rates, the shares of tankers listed in Northern Europe (link) have soared, and Torm's stock closed up 2.6% on Monday at $41.05. As of Monday’s close, the company’s US-listed shares had surged about 110% year-to-date, including a 47% gain over the past three months. (For the convenience of non-English speakers, Reuters provides its report with automated translation into several languages. Due to the possibility of errors or the lack of contextual accuracy from automated translation, Reuters does not guarantee the accuracy of these texts. The automated translation is provided for readers’ convenience only. Reuters accepts no liability for any damage or loss arising from the use of automated translation features.)
BRIEF-Lamb Weston Holdings Announces Quarterly Dividend
Lamb Weston Holdings, Inc. LW.N: LAMB WESTON HOLDINGS ANNOUNCES QUARTERLY DIVIDEND LAMB WESTON HOLDINGS - DECLARES QTRLY DIVIDEND OF $0.38 PER SHARE Source text: ID:nBwWVH9na Further company coverage: LW.N
Crypto prices
More
