SpaceX stock SPCX gained 1.7% on Tuesday after UBS said the company’s third-quarter results could exceed Wall Street expectations, supported by growth in artificial intelligence, Starlink connectivity, and commercial launches.
UBS reiterated a Buy rating on SpaceX and a $210 price target, according to TheFly.
The target implies more than 71% upside from current levels.
The bullish view comes as SpaceX continues to invest heavily in AI computing infrastructure, Starlink and its launch capabilities.
The company is also attracting positive analyst attention following the first orbital flight of its Starship vehicle and the deployment of next-generation Starlink V3 satellites.
UBS sees AI driving SpaceX’s third-quarter results
UBS expects SpaceX to report third-quarter revenue of $13.8 billion, around 7% above Wall Street’s $12.9 billion estimate.
The brokerage also forecasts adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $7.5 billion, roughly 9% above consensus.
The firm’s estimates point to AI as the largest contributor to SpaceX’s revenue during the quarter.
UBS expects the AI business to generate $7.6 billion in revenue, helped by the expansion of the company’s agreement with Anthropic, according to Investing.com.
Connectivity revenue is forecast to increase 59% to $4.9 billion, while Space revenue is expected to reach $1.3 billion, supported by an increase in commercial launches during the year.
Analysts currently expect SpaceX to generate approximately $44.82 billion in full-year 2026 revenue, according to Fiscal.ai.
UBS estimates that SpaceX will spend $19.3 billion on capital expenditure in the third quarter as the company expands its AI computing infrastructure, Starlink network and launch operations.
Analysts highlight AI and connectivity growth
UBS is not the only brokerage expecting significant growth from SpaceX’s AI operations.
TD Cowen initiated coverage of SpaceX on Monday with a Buy rating and a $200 price target.
The firm cited growth opportunities across AI and space and expects AI compute leasing revenue to increase from $14 billion in 2026 to $66 billion in 2027 and $133 billion in 2028.
The forecasts underline the growing importance of AI computing to SpaceX’s business alongside its established connectivity and launch operations.
Starlink is also expected to remain an important source of growth.
UBS forecasts a 59% increase in connectivity revenue during the third quarter, while Space revenue is expected to benefit from increased commercial launch activity.
Starship milestone comes with execution risks
The analyst optimism comes shortly after SpaceX’s Starship completed its first orbital flight and deployed 26 next-generation Starlink V3 satellites during Flight 14.
The mission was shortened after an engine shut down prematurely, although the flight still achieved its key orbital and satellite-deployment objectives.
Morgan Stanley described the flight as a “major accomplishment” but gave it a B+ grade, citing recurring issues with the V3 propulsion system.
The firm said Flight 15 could be important, with a successful Starship catch potentially becoming a major catalyst for the stock following its IPO.
Morgan Stanley maintained its Overweight rating and $300 price target.
RBC Capital reiterated its Outperform rating and $225 target, describing Flight 14 as a significant milestone for Starship’s launch capabilities and Starlink V3 deployment.
Clear Street maintained its Buy rating and $217 target, saying the mission advanced SpaceX’s ability to scale a higher-capacity constellation while noting that the engine issues highlighted remaining execution risks.
CLSA initiated coverage with an Accumulate rating and a $250 target.
Together, the analyst views point to continued expectations for growth across SpaceX’s AI, connectivity, and launch businesses, while also highlighting execution risks surrounding Starship’s development.
With price targets ranging from $200 to $300, SpaceX is likely to stay a closely watched name on top investment platforms.
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