Bernstein and Deutsche Bank raise SpaceX targets on AI computing plans

Bernstein and Deutsche Bank raised their SpaceX price targets on October 26, putting more weight on the company’s ground-based AI computing plans. The banks see potential value beyond its space operations, with Deutsche Bank pointing to a large capacity increase and a possible cost advantage, according to CNBC.

Bernstein kept its outperform rating, while Deutsche Bank maintained a buy rating. Their revised targets imply substantial gains from Friday’s closing share price: about 82% for Bernstein and nearly 70% for Deutsche Bank. Those percentages describe the analysts’ expected upside, not returns the stock has delivered.

The revised price targets

Bernstein

$248→$268

USD per share

Bernstein raised its target while retaining an outperform rating.

Deutsche Bank

$230→$250

USD per share

Deutsche Bank raised its target while retaining a buy rating.

Capacity and pricing underpin Deutsche Bank’s case

Deutsche Bank analyst Edison Yu said SpaceX is aiming to bring roughly 10 gigawatts of additional computing capacity online by the end of 2027. That is an account of the company’s ambition attributed to Yu, rather than an announcement that the infrastructure is already operating.

Yu also estimated that SpaceX’s computing capacity could be priced at roughly $35 billion per gigawatt, against what he described as an industry standard of $50 billion. Deutsche Bank sees that gap as a potential advantage over competitors and a reason the shares could gain value.

His argument extends beyond adding capacity. Yu wrote that estimates for the next few quarters may still be too low. Further out, he believes investors underestimate SpaceX’s ability to turn a computing advantage into better inference—the process of running an AI model—and intelligence.

Bernstein separates ground-based revenue from orbital ambitions

Bernstein analyst Douglas Harned said the higher target primarily reflects terrestrial AI construction plans. He described those plans as a material addition to SpaceX’s potential revenue, while drawing a distinction between that contribution and the company’s more ambitious valuation case.

In Harned’s assessment, a multi-trillion-dollar valuation still depends on successful orbital data centers. Ground-based AI therefore adds to his revenue outlook without replacing the separate condition he places on the largest valuation scenario.

The two banks’ positive ratings fit a wider Wall Street pattern. LSEG data cited by CNBC showed that 33 of the 43 analysts covering SpaceX rated it buy or strong buy. Shares were roughly flat over the preceding month.