SpaceX Stock Is Worth This Much, According to Dan Ives (Hint: Big Gains Ahead)

Ives' investigation frames SpaceX arsenic much than a rocket and outer operator, highlighting its presumption arsenic a vertically integrated exertion concern with recurring gross streams and strategical extent that could present semipermanent gains.

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Why does Dan Ives similar SpaceX stock?

Ives assigned SpaceX an outperform standing and a 12-month terms people of $190. This implies astir 18% upside from wherever it closed Monday's trading session. His optimism is supported by a sum-of-the-parts valuation exemplary anchored to fiscal 2028 estimates, projecting an endeavor worth adjacent $2.5 trillion.

Central to the thesis is Starlink's imaginable to mature into a durable nett motor done dependable subscription revenue. Interestingly, Ives is not the lone expert connected Wall Street who sees game-changing imaginable from Starlink. Timothy Horan of Oppenheimer besides cites Starlink's imaginable to disrupt the telecommunications manufacture arsenic a large operator of SpaceX's aboriginal growth.

Additionally, Ives sees SpaceX accelerating its information successful hyperscaler AI build-outs. In essence, alternatively than viewing SpaceX solely done an aerospace lens, Ives emphasizes the company's entree to expanding markets that make a diversified maturation profile.

How is SpaceX becoming an AI company?

Over the past month, SpaceX has moved aggressively to amended showcase its ecosystem, blending its strengths successful abstraction exploration with its AI capabilities. The institution inked agreements to lease immoderate of its compute infrastructure capableness to Google Cloud, Anthropic, and Reflection AI. Taken together, these contracts volition beryllium worthy up to $82 cardinal implicit the adjacent fewer years. Under these arrangements, frontier AI developers summation instant entree to high-performance Nvidia GPU clusters housed successful SpaceX's information centers.

Additionally, SpaceX precocious agreed to get Cursor for $60 cardinal successful an all-stock transaction. Cursor is simply a coding concern that is expected to bring caller bundle capabilities to SpaceX's broader AI portfolio. These moves awesome that SpaceX is deliberately aiming to monetize existing AI infrastructure and integrate caller endowment arsenic the institution moves beyond its bequest motorboat and connectivity businesses.