SpaceX (SPCX) Stock: CFO Doubles Down on $100B Revenue Goal After Massive AI Deal

Key Takeaways

• CFO Bret Johnsen expressed heightened confidence that SpaceX can achieve a $100B annual revenue run rate
• The company secured an AI computing contract valued at $1.11B monthly, set to launch in December, contributing approximately $13B in yearly revenue
• Second-quarter results showed revenue reaching $7.81B, representing 91.9% growth year-over-year, with earnings per share outperforming forecasts by $0.17
• Shares started Friday’s trading session at $148.18, while analysts maintain a “Moderate Buy” rating with a consensus target of $221.06
• Concerns persist around an elevated valuation approaching 98x sales, recent lockup expiries increasing share availability, and questions surrounding AI infrastructure buildout timelines

Shares of SpaceX (SPCX) began Friday’s session at $148.18, climbing 0.4%, following CFO Bret Johnsen’s remarks at the Goldman Sachs Communacopia + Technology Conference where he expressed strengthened confidence in achieving a $100B annual revenue run rate.

Space Exploration Technologies Corp., SPCX

The driving force behind this optimism? A newly signed AI computing agreement valued at $1.11B each month, launching this December with a client that remains unnamed. This single arrangement contributes approximately $13B in annual recurring revenue to the company’s growth trajectory.

Achieving the $100B annual run rate requires SpaceX to generate approximately $8.3B monthly. Current Q2 data shows the company producing roughly $2.6B per month. This translates to a necessary tripling of monthly revenue from present levels.

While the calculations appear ambitious, the contract pipeline continues expanding. SpaceX has a $6.7B cloud services arrangement scheduled to scale up in October, and current AI compute partnerships with Google (GOOG) and Anthropic (ANTHRO) already deliver over $2B monthly in combined revenue.

According to Johnsen, AI infrastructure investments can achieve payback periods under twelve months given the computing capacity lease agreements SpaceX has locked in.

Infrastructure Buildout Plans

Regarding infrastructure development, SpaceX aims to deploy slightly more than 2 gigawatts of ground-based AI computing capability by the close of 2026, scaling to between 5 and 10 GW throughout 2027. Johnsen highlighted power supply constraints as an increasing challenge for terrestrial AI operations, prompting the company to investigate space-based computing solutions for future deployment.

Second-quarter financial results exceeded expectations on both revenue and earnings fronts. The company posted $7.81B in revenue, marking 91.9% year-over-year expansion. The reported loss per share of $0.09 surpassed analyst projections of a $0.26 loss by $0.17.

Wall Street maintains a generally favorable outlook. The equity holds a “Moderate Buy” consensus rating with analysts projecting an average target price of $221.06. Coverage breaks down to two Strong Buy recommendations, 26 Buy ratings, eight Hold positions, and seven Sell ratings.

Street Perspectives and Potential Headwinds

Recent analyst activity includes Pivotal Research issuing a Buy recommendation with a $220 price objective, while HSBC launched coverage with a Hold rating and $115 target. Both TD Cowen and Roth Capital maintain Buy recommendations.

Valuation concerns remain prominent, with the stock trading at approximately 98 times sales—a multiple that has dampened some investor enthusiasm. Recent expiration of lockup periods has also released hundreds of millions of shares for potential trading.

Hedge fund Third Point revealed acquiring approximately $31 million worth of SPCX shares following the initial public offering. Additionally, Representative Maria Elvira Salazar purchased between $1,001 and $15,000 of SpaceX stock in August via her UBS IRA account.

Reaching the $100B run-rate objective remains dependent on execution speed for current agreements. Unexpected delays could prevent SpaceX from hitting that annualized threshold.

The post SpaceX (SPCX) Stock: CFO Doubles Down on $100B Revenue Goal After Massive AI Deal appeared first on Blockonomi.