SpaceX Targets Surge After AI Boom

Wall Street analysts moved swiftly to revise their outlooks for SpaceX (NASDAQ: SPCX) following a third-quarter report that significantly outpaced market expectations. The stock, which closed at $147.79 on October 20, jumped approximately eight percent in early premarket trading on October 21. This sharp movement reflects a sudden shift in sentiment as investors digested the new financial data and elevated price targets from major firms.

The core of the surprise lies in the rapid expansion of the company's artificial intelligence arm. The Super Intelligence division generated roughly $7.6 billion in revenue, becoming the largest contributor to the top line. This segment saw year-over-year growth of nearly 830 percent. While the Connectivity segment delivered $5.2 billion by lifting the Starlink consumer base to 13.6 million subscribers, it was the AI compute expansion that drove the overall revenue surge to $14.6 billion, a 161 percent increase over the prior year.

Profitability markers also shifted dramatically from the previous period. The company reported a net profit of $4.4 billion, reversing a loss from the same time last year. Adjusted EBITDA reached $8.8 billion, further validating the operational efficiency of the new business lines. These figures comfortably exceeded the consensus estimate of $12.7 billion for quarterly revenue, signaling stronger-than-anticipated earnings power.

Guidance for the coming periods provided additional fuel for the rally. CEO Elon Musk and CFO Bret Johnsen outlined Q1 2027 revenue guidance of $33 billion to $37 billion, a figure far above the roughly $22 billion modeled by analysts. Management also detailed fourth-quarter capital expenditure plans of $35 billion to $40 billion, focused primarily on AI compute infrastructure in Memphis and Southaven. These investments target 2.5 to 3 gigawatts of nameplate compute capacity by year-end, with pathways to 13 gigawatts or more by the end of 2027.

In response to these developments, a wave of price target hikes swept through the analyst community. JPMorgan more than doubled its target to $500 from $240, maintaining an Overweight rating. Cantor Fitzgerald raised its target to $345 from $246, while Barclays and Morgan Stanley both set targets at $300. Citi, UBS, and TD Cowen also increased their estimates, with targets ranging from $224 to $240. Wells Fargo and Clear Street adjusted their views upward as well, citing the strong quarterly print and Starship milestones as key drivers.