SpaceX Stock Surges Past $175 on Cloud Demand and Wall Street Upgrades

SpaceX shares have surged past $175, reigniting investor interest as Wall Street analysts raise their price targets. Goldman Sachs upgraded its 12-month target to $230, citing stronger cloud business expectations and potential demand from Microsoft. The bank's analyst, Eric Sheridan, also increased capacity, revenue, and margin forecasts for 2026 through 2028, highlighting the growing importance of SpaceX's computing segment.

Microsoft could become a major customer for SpaceX's computing services, according to reports. The companies reportedly held talks over leasing computing capacity, although no deal has been confirmed. Microsoft's planned $175 billion in capital spending for 2026 underscores the high demand for computing infrastructure, which could benefit SpaceX significantly.

Analysts are increasingly bullish on SpaceX's cloud revenue, with Bernstein's Douglas Harned projecting a nearly fivefold increase from $24.6 billion in 2026 to $115.1 billion in 2027. Existing customers like Anthropic and Alphabet are already contributing substantial revenue, with new contracts expected to generate over $39 billion annually once fully operational. SpaceX is expanding its computing capacity, aiming to reach between 5 GW and 10 GW next year.

Wall Street's targets for SpaceX vary, with Morgan Stanley setting a $300 target and TD Cowen initiating coverage with a $200 target. While the optimistic outlook reflects SpaceX's growth potential, the stock's valuation nearing $2 trillion raises concerns about meeting high expectations, particularly with execution risks surrounding Starship's development and deployment.