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-AMD shares rise on plans to increase chip supply
October 6 — U.S. chipmaker Advanced Micro Devices (AMD.O) saw its shares rise 1.5% in pre-market trading, reaching $641.10. CEO Lisa Su stated that as AMD races to meet surging demand in the artificial intelligence sector, the company plans to significantly boost chip supply by 2027 (link). Su also noted that AMD is working closely with memory chip manufacturers to ensure sufficient supply; her remarks come ahead of her scheduled visit to South Korea later on Tuesday. At least two brokerage firms, including Citigroup, have raised their price targets for the stock, according to data compiled by LSEG. Out of 56 brokerages, 47 rate AMD as a “buy” or higher, and 9 rate it as “hold”; the median price target is $616, per LSEG data. As of yesterday’s close, the stock has gained over 100% year-to-date. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several other languages. As automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of these texts and provides them solely for readers’ convenience. Reuters accepts no liability for any damages or losses arising from the use of automated translations.)
New York securities industry targets profits of 90 billions USD! Goldman Sachs (GS.US) breaks quarterly records three times, Wall Street bonuses to hit all-time high
Profits of the New York securities industry are expected to surpass 90 billions USD, exceeding last year’s record of 65.1 billions USD, with bonuses potentially reaching all-time highs; underwriting income has increased by 68%, contributing 26.3 billions USD to state finances.
Citigroup (C.US) accelerates promotion pace to counter private equity headhunting
Citi (C.US) is shortening the time required for investment banking analysts to be promoted to associates in order to attract and retain top talent in a highly competitive job market.
With growing innovation momentum, Kraft Heinz actively adapts to the trends of high-protein and high-fiber products.
Kraft Heinz launches “Kraft Mac & Cheese-Flavored Ramen.” “Our pace of innovation has not been fast enough,” said the North American President. CEO Steve Cahillane is working to revitalize the packaged food company. While Kraft Heinz shares are down this year, the company’s performance has outpaced its peers. Kraft Heinz is strongly supporting health trends such as high-protein and high-fiber lifestyles, investing heavily in marketing, and trying to make up for lost time in innovation, the company’s North American President told Reuters. Under CEO Steve Cahillane, who took over in January, the U.S. packaged food company has dropped plans to split its business in two and allocated $700 million this year for marketing and R&D to reverse years of declining market share. This year, the company launched the high-protein “PowerMac & Cheese” and added healthier variations to its portfolio, featuring lower sugar and salt with more protein and dietary fiber. Kraft Heinz is also venturing into new product categories: on Tuesday, it launched a cheese-flavored ramen in the U.S., aiming to meet American consumers’ rising demand for diverse flavors and convenience. “We are engaging more actively in different segments and disrupting certain categories,” Nico Amaya said in an interview, specifically mentioning the $2.7 billion ramen market, mostly led by small businesses. “Frankly, our pace of innovation has not been fast enough,” he added. “We have some excellent brands, but we haven’t invested in them in the past.” This year, marketing and R&D spending for brands like PowerMac increased by 35%, and Amaya stated Kraft Heinz will maintain this level of investment in the future. CEO Cahillane expects innovation projects to accelerate by 2027. Despite a roughly 10% decline in share price this year, Kraft Heinz’s performance has still outdone other U.S. packaged food companies like Conagra Brands, General Mills, and PepsiCo. Persistent inflation is pressuring household budgets, pushing consumers toward cheaper private-label alternatives; meanwhile, the rapid adoption of GLP-1 weight-loss drugs is forcing packaged food makers to adjust product formulations to satisfy demand for healthier foods. Kraft Heinz has already launched its cheese-flavored ramen in Canada. Amaya said the company also introduced smaller portion “PowerMac” cups and has reformulated more than 1,000 products, increasing protein and dietary fiber while reducing added sugar and fat. “The trend toward healthier products in many respects will be here for the long-term,” Amaya told Reuters. “And protein will become a vital part of everyone’s diet.” (Note: This Reuters report was automatically translated into several languages for convenience. Because automated translation may be inaccurate or lack proper context, Reuters does not guarantee the accuracy of automated translations and accepts no liability for any damages or losses that may result from their use.)
Crypto prices
More
