Forget Rockets. This Is The Real Reason Wall Street Can't Stop Buying SpaceX.

SpaceX shares have dropped 20% from their $135 IPO price to $108, yet Wall Street analysts maintain a bullish stance with an average price target of $236.71. The gap between current price and target reflects analyst confidence in a pivot beyond rockets: the company's push into artificial intelligence infrastructure.

Analysts point to SpaceX's integration of terrestrial data centers, orbital infrastructure, and xAI tools as the growth engine that justifies their targets. The AI expansion comes as the company's Starlink satellite internet division already operates profitably, providing a revenue base while newer ventures scale.

SpaceX currently runs at a loss due to heavy AI investment spending. Analysts forecast the company will return to profitability by 2027, with revenue projected to hit $141.6 billion by 2028. The thesis hinges on SpaceX leveraging its orbital assets and ground infrastructure to capture AI workload demand that competitors without space-based capabilities cannot address.

The 20% decline from IPO creates an entry point for investors betting on the AI infrastructure thesis, though near-term losses will continue as the company prioritizes buildout over earnings.