
What a $10,000 investment in SpaceX could be worth by the end of 2027 after Elon Musk’s shocking revenue forecast
With around $10,000, investors could buy 70 shares of EspaceX (NASDAQ: SPCX) now, and the stock could more than double over the next year.
CEO Elon Musk shocked many investors during SpaceX’s third-quarter earnings call when he predicted the company could end 2027 with annual recurring revenue (ARR) between $500 billion and $1 trillion. Prior to the quarterly report, analysts predicted that the space company would generate revenue of $132.4 billion in 2027 and $249.4 billion in 2028. Although ARR and revenue are quite different metrics – ARR is more akin to a year-end revenue rate – the clear implication is that Musk believes SpaceX can blow away Wall Street’s revenue consensus.
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After the October 20 report, analysts naturally scrambled to increase their revenue targets. This includes Brian Gesuale of Raymond Jameswhich roughly doubles its revenue estimates for SpaceX through 2028, while maintaining a market-high $800 price target for the stock. Consensus on SpaceX’s revenue now stands at $180.6 billion for 2027 and $330.9 billion for 2028. That’s still far from what Musk’s forecast would imply, although that average is likely to drift upward as more analysts make upward revisions.
How SpaceX Reaches Over $500 Billion in ARR in 2027
There are several ways SpaceX could achieve over $500 billion in ARR by the end of 2027 as a standalone company. The main driver of revenue growth will be AI infrastructure rental. Because SpaceX uses short-term leases for its data center capacity, it currently has strong pricing power in a compute-starved world. From the moment the capacity comes online and is leased, SpaceX hopes to recoup its initial investments in this capacity in about a year. Given the rapid pace at which it hopes to start generating profits on these investments, we can expect the company to aggressively increase its investments to develop additional computing capacity.
In its second-quarter report, SpaceX predicted it would end the year with 2 gigawatts of computing power; three months later, Musk said he could end 2026 with up to 3 gigawatts. However, the biggest change in his forecast was for 2027. During the company’s second-quarter call, Musk said SpaceX would likely end 2027 with a cumulative computing capacity closer to 10 gigawatts than 5 gigawatts. During the third-quarter earnings call, however, he predicted that SpaceX would end 2027 with about 13 gigawatts of computing capacity, with a long-term goal of adding 20 gigawatts of additional computing power next year.
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