TLDR
- Goldman Sachs lifted its SpaceX price target to $230 from $220 and stuck with its buy rating.
- The updated target points to about 37% upside and tops the stock’s record high of $225.64.
- Reports say SpaceX wants to raise $40 billion to buy more Nvidia chips for its compute unit.
- Morgan Stanley’s Adam Jonas went further, slapping a $300 target and overweight rating on the stock.
- Jim Cramer argued SpaceX might hit its stride quicker than Tesla managed to.
Shares of SpaceX slipped roughly 2% on Wednesday, closing at $167.60. The move lower came despite a fresh wave of bullish calls from major banks.
Space Exploration Technologies Corp., SPCX
Goldman Sachs bumped its price target up to $230, from $220 previously. The bank left its buy rating untouched.
That figure now sits above SpaceX’s all time high of $225.64, hit on June 16 shortly after the company’s splashy IPO. From Wednesday’s closing price, it works out to about 37% of upside.
CNBC host Jim Cramer noted the stock had traded as low as $104.83 back in early August. At that point, Goldman’s original $220 call looked like a stretch.
Cramer said the fact that Goldman raised the number anyway, with shares still trading well under it, changes the picture. To him, it signals the bank’s thesis is holding up under pressure.
Why the Compute Business Matters
The stock currently carries a valuation of about 137 times projected earnings over the next year, per FactSet. Cramer has pushed back against critics who call that number excessive.
He points to SpaceX’s reach across several businesses at once. Starlink, reusable rockets, and a budding data center push all fall under one roof.
On top of that, the company already rents out spare computing capacity to Anthropic and Alphabet’s Google. Reporting from the Financial Times suggests that side of the business is about to expand.
SpaceX is reportedly working to raise $40 billion, split between $10 billion in bank loans and $30 billion in investment grade debt. The cash would go toward buying additional Nvidia chips.
Cramer said Musk could put that hardware to use almost instantly. He went as far as suggesting SpaceX might become Nvidia’s single biggest customer before long.
A Second Wall Street Bull Steps In
Morgan Stanley’s Adam Jonas is leaning even further into the optimism. He’s set a $300 price target on SpaceX, paired with an overweight rating.
Jonas described the company as a rare setup, thanks to how its various businesses feed into one another. He also called the stock cheap once you factor in its exposure to chips and power.
Cramer, for his part, still isn’t adding SpaceX to his Charitable Trust portfolio. He maintains the stock remains too speculative for that particular use.
Even so, he said the company’s trajectory is starting to look less like a bet and more like a sure thing. He drew a direct comparison to Tesla, saying SpaceX could get there on a shorter timeline.
Looking at the daily chart, SPCX has been carving out an ascending triangle since bottoming near $105 in August. Higher lows have formed steadily, while the stock keeps bumping into resistance in the $170 zone, right where Wednesday’s slide began.
The RSI reading near 64 suggests buyers are still in control without the stock being overbought just yet. MACD remains positioned above its signal line, which keeps the near term bias pointing up, though a decisive move past $170 is likely needed before shares can challenge the $225.64 high again.
In overnight trading following the session, SPCX ticked up 0.27% to $168.05, based on the latest available data.
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