RBC Maintains Bullish Outlook on SpaceX Amid S&P Global Warnings Over AI Debt
Analysts at RBC have reiterated an 'outperform' rating for SpaceX (SPCX), setting a price target of $225 per share following a massive quarterly earnings beat. The company reported $14.6 billion in revenue, representing a 161% increase, and swung from a prior year loss to $4.4 billion in earnings. This growth was largely driven by the Starlink satellite network, which contributed $5.25 billion in revenue. However, S&P Global has issued a cautionary note regarding 'hidden AI debt' among hyperscalers. While Elon Musk claims SpaceX is expanding its AI capacity faster than competitors, the company is reportedly finalizing a $40 billion off-balance-sheet debt structure to fund these capital expenditures. With total AI spending projected to reach trillions across the sector through 2029, analysts suggest investors should weigh SpaceX's aggressive growth against potential overextension.
Topics: AI infrastructure Hyperscaler debt SpaceX earnings Starlink revenue
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