SpaceX Corp (NASDAQ:SPCX) shares remained under pressure on Wednesday, with shares falling about 13% to around $109, as analysts remained broadly positive following the company's first earnings report as a public company, arguing the results reinforced its long-term growth outlook despite ongoing investor concerns over capital spending.
Bank of America reiterated its ‘Buy’ rating and $235 price target, noting that SpaceX delivered a “strong Q2 print," beating expectations on both revenue and profitability while providing constructive disclosures and additional detail on its long-term growth plans.
The firm acknowledged that the stock continues to be weighed down by elevated capital expenditure expectations and questions around monetizing its artificial intelligence and Starlink Mobile businesses, but wrote it is now more positive on the company's positioning across its key markets.
The analysts highlighted the performance of SpaceX's AI segment, which exceeded its expectations on the strength of third-party compute sales. Bank of America wrote that the company is investing heavily in terrestrial computing infrastructure ahead of its planned deployment of orbital AI satellites, ending the second quarter with 1.4 gigawatts of capacity and targeting more than 2 gigawatts by the end of 2026 and between 5 and 10 gigawatts in 2027. It also expects compute agreements with Anthropic and Google to accelerate growth in the second half of 2026 and estimates the AI business will generate about $24.5 billion in revenue next year.
Looking ahead, Bank of America identified the upcoming Flight 14 Starship test, expected in late August or early September, as an important milestone. The analysts wrote that the mission should provide additional clarity on the company's progress toward rapid rocket reusability, with investors expected to focus on the Starship upper stage's orbital reentry, heat shield performance, and controlled tower landings for both stages.
Deutsche Bank analysts also reiterated their ‘Buy’ rating but lowered their price target to $235 from $255.
The firm wrote that SpaceX delivered strong second quarter results that "easily" beat both its own and consensus estimates, driven by upside in AI Infrastructure and Starlink Enterprise & Government.
The bank said the company's near-term growth trajectory now appears stronger than previously anticipated, prompting it to raise its forecasts and see a faster path to $100 billion in annual revenue. However, Deutsche Bank also noted that capital spending appears set to ramp significantly in 2027 as the company targets adding at least another 3 gigawatts of compute capacity.
Deutsche Bank wrote it remains "steadfast" in its long-term bullish thesis on SpaceX, while acknowledging the stock has been under pressure in recent weeks.
The firm also highlighted continued momentum across the company's space business, noting management expects Starship Test Flight 14 to carry Starlink V3 broadband satellites into operational orbit and may attempt a tower catch of the second-stage spacecraft.
Deutsche Bank added that management appeared confident in its approach to addressing concerns around Starship's heat shield and noted the company aims to deploy 1,000 next-generation V3 broadband satellites by the end of the second or third quarter of 2027, which it estimates would require roughly 20 Starship launches.