I remember watching the first Starship flight test from my phone right from the turf. It was supposed to be a glance. Instead, I ended up in the turf’s parking lot for a couple of minutes.
I spend most of my days analyzing markets, studying trade setups, and digging through financial news to find stories worth telling. But watching the largest rocket ever built made all that market noise feel strangely small.
That is, until you look at the money it takes to make the ambition possible.
SpaceX is now reportedly seeking $40 billion worth of Nvidia chips, and Jim Cramer said on Oct. 7 that it “could end up being Nvidia’s largest client at this pace.”
That sentence should make you pause if you are an investor paying attention to the AI infrastructure buildout.
In an earlier report, TheStreet noted that Goldman Sachs raised its price target to $230 from $220 on Oct. 7, reiterating a Buy rating. SPCX trades at $160 as of the Oct. 8 close, according to Yahoo Finance.
That target is approximately $5 above the stock’s all-time high of $225.64, reached on June 16, just four days after the IPO, according to TheStreet.
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Goldman’s $10 bump actually matters more than it looks
When SpaceX fell to $104.83 in early August, the original $220 Goldman target looked less like analysis and more like optimism. $104.83 low also marks the lowest price SPCX has reached since its launch.
The firm’s decision to raise that target now with shares at $160 and still well below the prior target, is more than a mechanical upward revision.
More SpaceX:
“The $10 bump from $220 to $230 ratified their previous $220 figure, which means something with the stock at $167,” Cramer said. “Maybe there really is some rigor to this analysis.”
In other words, Goldman is saying its previous conviction was justified and extending it. For a stock as speculative and controversial as SpaceX, institutional validation at these levels carries weight.
SpaceX’s compute business is the part that changes everything
The original SpaceX investment thesis focused on Starlink subscriber revenue, reusable-rocket economics, and government contracts. Those remain important. But the thesis with the most asymmetric upside and the one driving Cramer’s Nvidia comment is compute.
SpaceX is already generating revenue by renting out excess computing power to companies including Anthropic and Google, according to Cramer, citing publicly available reports.
