Wall Street Bets Big on SpaceX as AI and Space Ambitions Dazzle Analysts

A Wall Street Endorsement Unlike Any Other

Goldman Sachs and Morgan Stanley, the two lead underwriters on SpaceX's initial public offering, arrived at price targets more than $1 trillion apart in value as the 25-day quiet period for IPO underwriters expired on July 7. The moment that regulatory silence lifted, the floodgates opened — and the result was one of the most enthusiastic waves of analyst endorsements a newly public company has ever received.

Morgan Stanley assigned an "overweight" rating and a $300 price target, representing an 87% upside from Monday's close of $160.42. Goldman Sachs also started coverage with a Buy rating and a $205 price target, with analyst Eric Sheridan writing that SpaceX is well positioned across the space, connectivity, and AI industries. The divergence between the two banks is striking — but both are telling investors the same essential story: SpaceX is worth far more than where it's currently trading.

Not Just Rockets Anymore

Morgan Stanley analysts described the opportunity as "the final frontier," writing that SpaceX "can convert energy into intelligence at scale and monetize it through diverse consumer and enterprise solutions, leading the next era of AI." On the revenue front, Morgan Stanley projects SpaceX's top line could hit $319 billion by 2030 and swell to $3.3 trillion by 2040. That's not a typo — trillion, with a T.

Goldman expects SpaceX's AI sales to skyrocket from $3.2 billion in 2025 to $322 billion by 2030 — a roughly 100-fold jump — and projects that total revenue could rise from $18.7 billion to $474 billion over the same period. Those lofty numbers are attributed to SpaceX's platform that layers in launch capacity, satellite manufacturing, Starlink distribution, xAI, and orbital data centers. The company's February 2026 merger with xAI has clearly reshaped how Wall Street thinks about its long-term ceiling.

A Crowd of Bulls — With Caveats

Citigroup assigned a Buy rating with a 12-month price target of $200, while UBS and Wells Fargo also initiated coverage with positive recommendations, adding to growing institutional support for the newly listed company. Raymond James, another underwriter on the IPO, initiated coverage with an $800 price target and a strong buy rating. The sheer breadth of bullish calls underscores just how rare and compelling Wall Street views this opportunity.

That's also where the risk sits. SpaceX still needs to scale up Starship, prove space-based AI compute, keep Starlink growing, manage intensive capital needs, and avoid regulatory setbacks. The stock's small public float, looming insider lockup expirations, and a price-to-sales ratio above 112 introduce significant volatility risk, with traders bracing for sharp price swings in both directions. Despite the bullish chorus, the market's reaction has been mixed — shares faced selling pressure in the days following the ratings blitz.

The Bigger Picture

SpaceX raised $75 billion in its June IPO, selling shares at $135, making it the largest IPO on record. SpaceX also joined the Nasdaq-100 Index on July 7, qualifying under updated index rules that allow certain large newly listed companies to enter the benchmark after just 15 trading days following their public debut. JPMorgan estimates the index inclusion could drive up to $4.3 billion in inflows into the stock.

Goldman Sachs' SpaceX note makes it clear that the company's valuation story is no longer just limited to launches, Starlink subscribers, or Elon Musk's space ambitions. Whether SpaceX can deliver on the astronomical expectations now being set by Wall Street's biggest names remains to be seen — but one thing is certain: the financial world has fully planted its flag on the final frontier.