SpaceX Valuation Soars to $10.5tn Amid AI Hype
SpaceX has joined the Nasdaq 100 and one analyst predicts a $10.5 trillion valuation by 2035, driven by AI computing power sales. However, a renowned investor warns of a 90% chance of a crash. The company's stock trades below $2 trillion currently.
Key points
- SpaceX has joined the Nasdaq 100, a benchmark index of the largest non-financial companies in the US.
- Analyst Brian Gesuale predicts a $10.5 trillion valuation by 2035, driven by AI computing power sales.
- Gesuale expects AI to become the biggest business for SpaceX by 2027 and account for 94% of revenue by 2035.
- Jeremy Grantham, a renowned investor, warns of a 90% chance of a SpaceX crash.
- 29 out of 35 analysts tracked by Bloomberg rate SpaceX a 'buy', while others, including Morgan Stanley and JPMorgan, have opened coverage with positive outlooks.
SpaceX's recent addition to the Nasdaq 100 has sparked excitement among investors, with one analyst predicting a $10.5 trillion valuation by 2035. Brian Gesuale, a Raymond James analyst, believes that SpaceX's revenue will skyrocket to $5.2 trillion by 2035, driven by the sale of AI computing power. This would make SpaceX the world's most valuable company, surpassing Nvidia's current valuation of $4.7 trillion.
However, not everyone is convinced. Jeremy Grantham, a renowned investor and co-founder of GMO, has warned of a 90% chance of a SpaceX crash. Grantham has a reputation for calling bubbles, and his warning has sparked concerns among investors.
Despite the mixed views, 29 out of 35 analysts tracked by Bloomberg rate SpaceX a 'buy', indicating a positive outlook for the company. Morgan Stanley, JPMorgan, and Goldman Sachs have also opened coverage with positive outlooks, further fueling the hype surrounding SpaceX.
As the company continues to grow and expand its reach, one thing is clear: SpaceX is at the forefront of the AI revolution. Whether it will be able to sustain its growth and achieve its predicted valuation remains to be seen.
Sources
The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.